Canary Capital Files For Pudgy Penguin $PENGU NFT ETF But We’re Not Sure Why

Canary Capital has submitted a submitting to the US Securities and Alternate Fee (SEC) for the creation of an exchange-traded fund (ETF) that can observe PENGU, the governance token for the Pudgy Penguin ecosystem.

The ETF would additionally embrace Pudgy Penguin NFTs and different digital property like Solana and Ethereum to facilitate transactions, marking the primary ETF to include NFTs alongside cryptocurrencies.

Submitted on March 20, the S-1 form outlines plans for the ETF to function as a belief, holding between 80% to 95% PENGU tokens and 5% to fifteen% NFTs. In keeping with the S-1 submitting, Canary Capital plans to judge NFTs for the ETF primarily based on elements like value, rarity, desirability, and total assortment worth.

The submitting comes simply days after Canary Capital introduced that it utilized for regulatory approval to launch an ETF tied to the spot value of Sui, a cryptocurrency related to Sui Network.

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Comprising 8,888 distinctive NFTs, the Pudgy Penguins assortment noticed its flooring value surpass $100,000 for the primary time by reaching a brand new all-time excessive of 34 ETH (roughly $104,600) in December 2024. Nonetheless, its value has cratered to 9.74 ETH since.

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The PENGU token launched on the Solana blockchain in December 2024, distributing 25.9% of its 88.89 billion provide by way of an airdrop to NFT holders, with allocations primarily based on the rarity of the NFTs. The token debuted with a market capitalization of roughly $2.8 billion and is presently traded on exchanges like Binance, Bybit, and OKX.

PENGU’s value has additionally been unstable. Regardless of being up virtually 30% over the yr, its worth is down 85% from its January highs.

Pudgy Penguins mum or dad firm, Igloo, expressed help for the proposed ETF, stating, “We’re ecstatic to have each $PENGU and Pudgy Penguins included on this new and progressive submitting geared toward pushing the boundaries of crypto and ETFs.”

“We consider that Pudgy Penguins is the face of crypto, representing innovation and the mass adoption of blockchain know-how,” the assertion stated.

Pudgy Penguins holders have come out of their plenty to help the ETF too. “$PENGU & Pudgy Penguin NFT ETF. First of its type. Historical past,” acknowledged one fan. “$PENGU and Pudgy Penguins NFT ETF. The world will embrace Pengu,” stated one other.

Nonetheless, the NFT market is not the once-thriving surroundings it was. As reported by Decrypt, “The NFT market suffered a dismal 2024, with buying and selling volumes and gross sales counts dropping to their weakest ranges since 2020. Annual buying and selling volumes fell by 19%, whereas gross sales counts dipped by 18% in comparison with 2023, based on a report by blockchain analytics platform.”

At a time when “rugpulls” have develop into extra synonymous with NFTs than “utility,” it is onerous to understand the worth of an NFT-based ETF until you are a Pudgy fan, of which there are lower than 5,000 holders based on Dune.