☰
Additional digital assets such as Solana (SOL) and Ethereum’s native token Ether (ETH) may also be included when necessary for fund transactions.
Canary Capital has become the first asset manager to file for an exchange-traded fund that holds both cryptocurrency and non-fungible tokens, marking a potential milestone for digital asset investment.
According to a March 20 filing with the U.S. Securities and Exchange Commission (SEC), the firm plans to launch an ETF tracking the Pudgy Penguins ecosystem. The ETF will combine exposure to its governance token, PENGU, with a collection of its NFTs.
“With respect to the Pudgy Penguin NFTs, the Sponsor [Canary Capital] will select which NFTs to purchase by considering factors such as price, relative rarity, perceived desirability of a particular NFTs traits and characteristics, and the overall collection value,” the filing said.
Additional digital assets such as Solana (SOL) and Ethereum’s native token, Ether (ETH), may also be included when necessary for fund transactions.
It would be the first U.S.-listed ETF to hold NFTs directly if approved.
PENGU initially spiked on the ETF news but has since dropped more than 8% in the past 24 hours during U.S. market hours on Friday, according to CoinGecko.
The application adds to Canary Capital’s growing list of crypto-related ETF proposals. Just days earlier, the firm submitted paperwork for a spot ETF tied to Sui (SUI), the native token of the Sui layer-1 blockchain.
ETF filings have surged recently, mainly as the SEC softened its stance under President Donald Trump’s administration.
Asset managers have submitted proposals for ETFs tracking a wide range of altcoins, from major players like Solana (SOL) to speculative tokens such as Dogecoin (DOGE) and Official Trump (TRUMP).
On Stocktwits, retail sentiment around the Pudgy Penguins token climbed higher within the ‘extremely bullish’ zone, with a jump in chatter to ‘extremely high’ from ‘high’ levels a day ago.
Most traders on the platform saw the token’s price dip as an opportunity to buy more, anticipating a rebound.
The Pudgy Penguins token has fallen nearly 25% over the past month, and its price is currently 90% below its all-time high of $0.06845, reached during its launch in December.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: BlackRock Sees US Recession As Bullish For Bitcoin – Retail’s Divided As BTC Price Recovers
subscribe to Asianet Newsable WhatsApp channel by clicking here.