What Happened?
Digital asset investment firm Canary Capital has filed for a proposal to launch the “PENGU ETF,” which involves the Pudgy Penguins project. This marks the first cryptocurrency ETF related to NFTs.
The ETF will primarily invest in the Pudgy Penguins NFT series and the project’s native token, $PENGU, while also holding both Solana (SOL) and Ethereum (ETH) tokens.
Following the announcement of the ETF application, the price of $PENGU and the floor price of Pudgy Penguins NFTs saw a slight increase. The project’s CEO expressed that this is a historic moment.
Canary Capital Submits Pudgy Penguins ETF Application
Digital asset investment firm Canary Capital has officially submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC) to apply for the PENGU ETF, which includes the Pudgy Penguins NFTs and the project’s native token, $PENGU.
This ETF will primarily allocate funds to the Pudgy Penguins NFT series and $PENGU. Additionally, the fund will hold both Solana (SOL) and Ethereum (ETH) cryptocurrencies to support the purchase, sale, and transfer of $PENGU and NFTs.
$PENGU serves as the governance token within the Pudgy Penguins ecosystem, currently boasting a market capitalization of approximately $435 million. According to reports, following the announcement of the ETF application, the price of $PENGU increased by over 7%, reaching $0.0073, while the floor price of Pudgy Penguins NFTs grew by more than 0.5 Ethereum within the same timeframe.
Luca Netz, CEO of Pudgy Penguins, also shared the submitted form from Canary Capital on X, referring to it as “a historic moment,” as this is the first cryptocurrency ETF involving an NFT project.
Furthermore, the parent company, Igloo Inc., believes that Pudgy Penguins symbolizes the mainstream adoption and large-scale application of blockchain technology. Being included in the ETF application document demonstrates their confidence in the project.
Is There Really No Demand in the Market?
In fact, this is not the first time Canary Capital has submitted applications for relatively “niche” cryptocurrency ETFs.
For instance, the Hedera (HBAR) ETF proposed in November 2024, as well as the recent Axelar (AXL) and Sui (SUI) ETFs, showcase Canary Capital’s ambition to break traditional norms. The company aims to broaden investors’ layouts beyond mainstream assets like Bitcoin (BTC) and Ethereum while testing the SEC’s reaction to such innovative products.
Nonetheless, crypto researcher Alex Krüger commented on X, stating, “After the announcement of the PENGU ETF application, the price hasn’t risen much, and new crypto ETFs have become a trivial joke.” He believes that such products are unlikely to attract substantial assets under management (AUM), leading to financial losses for the issuers.
Additionally, the shifting policies of the U.S. government have created an unclear regulatory environment for cryptocurrencies. While the Trump administration expressed a desire to make the U.S. the “global crypto capital,” over 100 enforcement actions have been taken against crypto firms during President Biden’s term, leaving the future regulation of crypto products in uncertainty.
However, despite the mixed market reactions, Canary Capital’s innovative efforts continue to quietly open a new chapter in cryptocurrency asset investment, sparking further discussions regarding the feasibility of digital asset investments.
Source: Cointelegraph, CryptoSlate