Canary Capital Files for Groundbreaking Crypto ETF: PENGU Token and Pudgy Penguins NFT Collection
In a significant move for the cryptocurrency landscape, Canary Capital has submitted an S-1 form to the Securities and Exchange Commission (SEC) to establish a crypto exchange-traded fund (ETF) focusing on the PENGU token and the popular Pudgy Penguins non-fungible token (NFT) collection. This initiative represents a monumental first, as it is the inaugural crypto-related ETF directly linked to an NFT collection. By providing investors with targeted exposure to both PENGU tokens and Pudgy Penguins NFTs, the new fund aims to innovate the way digital assets are traded and valued in traditional markets.
According to the SEC filing, the proposed fund intends to invest in a diversified portfolio that prominently features PENGU tokens, alongside NFTs from the esteemed Pudgy Penguins collection. Notably, the fund will also include holdings in Solana (SOL) and Ethereum (ETH) – cryptocurrencies deemed “necessary or incidental” to the purchase, sale, and transfer of the Trust’s PENGU tokens and Pudgy Penguins NFTs. Following the announcement, the PENGU token experienced a notable surge, with its price increasing by over 7% to hit $0.0073 shortly after the news broke. Concurrently, the floor price of Pudgy Penguins NFTs saw a rise of more than 0.5 ETH, further highlighting the strong market interest in this unique offering.
Luca Netz, the CEO of Pudgy Penguins, praised the filing as a historical milestone, reflecting not only the growing prominence of NFTs but also their integration into mainstream financial instruments. Netherland’s Igloo Inc., the parent company behind the Pudgy Penguins collection, added: “We believe that Pudgy Penguins is the face of crypto, representing innovation and the mass adoption of blockchain technology.” The inclusion of Pudgy Penguins in this filing serves as a robust validation of their vision for the future of digital assets.
Canary Capital is well-known for its bold and unorthodox approach to crypto-related ETF filings. In a previous notable move on November 12, 2024, the firm filed for the first Hedera (HBAR) ETF, which garnered significant attention due to HBAR’s unique position outside the top 20 cryptocurrencies by market capitalization. The unexpected move caught analysts off guard, including Bloomberg senior ETF analyst Eric Balchunas, who humorously referenced the need to Google information about Hedera to comprehend its relevance. This pattern of inventive and bold ETF proposals has continued into 2025 for Canary Capital, including the submissions for the first Axelar (AXL) ETF and the first Sui (SUI) ETF.
Such a series of filings indicates a broader, ongoing effort by Canary Capital to expand the capabilities and scope of crypto-related ETFs beyond the conventional assets like Bitcoin (BTC) and Ethereum (ETH). By challenging the status quo and probing the limits of regulators like the SEC, Canary is paving the way for innovative financial products that reflect the rapidly evolving landscape of cryptocurrency and blockchain technology. This move may very well open the door for further diversification of investment options available to the growing base of crypto enthusiasts and institutional investors.
In conclusion, the filing by Canary Capital for a crypto ETF focused on the PENGU token and Pudgy Penguins NFT collection marks a revolutionary step in integrating digital assets into traditional financial markets. Offering a tailored investment vehicle for a unique combination of cryptocurrencies and NFTs, this initiative signals a growing acceptance of such assets. As the digital asset industry continues to evolve, Canary’s pioneering efforts may serve as a catalyst for other firms to explore the vast possibilities within the intersection of cryptocurrencies, NFTs, and conventional investment products. The future of crypto ETFs could very well hinge on these innovative approaches to asset management.
