Canary Capital Applies for Pudgy Penguins Token ETF with NFT Integration
On March 20, American asset management company Canary Capital submitted an application to the U.S. Securities and Exchange Commission (SEC) for an ETF that combines the Pudgy Penguins token (PENGU) with NFTs. If approved, this would mark the first officially recognized crypto ETF in the U.S. that includes NFTs. This application also symbolizes a significant loosening of crypto policies in the U.S. following Trump’s return to power, leading to a noticeable shift in market sentiment.
Canary First to Apply for SUI Spot ETF, Followed by Pudgy Penguins Portfolio ETF
On March 18, Canary Capital became the first to apply for the U.S.’s first SUI spot ETF. This follows the approval of the Bitcoin spot ETF, indicating that institutions are beginning to expand into ETFs for other native cryptocurrencies.
SUI ETF Application Document Screenshot
Shortly after, on March 20, Canary submitted the Pudgy Penguins Portfolio ETF. According to the document, this ETF includes:
- Spot PENGU
- Pudgy Penguins NFTs
- ETH and SOL digital assets related to transfer operations
This indicates that the ETF is not merely tracking coin prices but is directly involved in the asset structure of the entire NFT ecosystem.
Pudgy Penguins ETF Application Document Screenshot
Mixed Industry Reactions, Analysts Doubt Interest in Crypto ETFs
Despite the continuous release of crypto ETFs, market reactions have been tepid. Crypto researcher Alex Krüger stated on Twitter (X) on March 20: “The Pudgy Penguins ETF announcement hardly moved coin prices; the current crypto ETFs are essentially a joke, most are unable to attract funds, and they even cost issuers money.”
Krüger Critiques the Chaos of Crypto ETF Issuances on Twitter
This reflects that some investors still have limited acceptance of ETFs related to non-mainstream coins, NFTs, or even meme coins.
Coin prices did not fluctuate following the news of the Pudgy Penguins ETF application, instead experiencing a slight drop of 1.9%.
Solana Double-Leverage Futures ETFs Launched, Spot ETF Still Awaiting Approval
Another asset management company, Volatility Shares, officially launched two Solana futures-related ETFs on March 20:
- SOLZ: Tracks Solana performance (1x leverage)
- SOLT: Tracks Solana performance (2x leverage)
These two ETFs indirectly track SOL performance through financial derivatives contracts, but the actual Solana spot ETF is still awaiting approval and has not yet officially entered the market.
Trump’s Administration Sparks Wave of Crypto ETF Applications, Market Acceptance Remains Uncertain
Canary Capital’s consecutive ETF applications indicate that U.S. asset managers are beginning to actively explore new types of crypto investment products, even potentially incorporating NFTs into ETF structures. In terms of policy, the regulatory environment has clearly relaxed since Trump’s return to power, and more crypto ETFs are expected to emerge. However, whether the market will accept these products is still too early to determine.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices may be highly volatile. You may lose all your principal. Please carefully assess the risks.