Asset Manager Canary Capital has filed with the U.S. Securities and Exchange Commission (SEC) for funds traded on an exchange tracking Pengu, the governance token of Pudgy Penguin. ETFs hold both Penguins and Pudgy penguins, and other cryptocurrencies such as Sol and ETH, which may be required to purchase, sell, or transfer Pengu and related NFTs.
Nashville, Tennessee-based Canary Capital filed the S-1 form with the SEC on March 20th. This is the first proposed EFT that includes NFTs. The ETF is configured as a trust that is expected to hold 80%-95% Pengu and 5%-15% NFT. Custodians and exchanges have not been selected yet.
First they released NFT, then gorgeous, now ETF
There are 8,888 Pudgy Penguin NFTs ranging from 9.86 ETH ($19,499 at the time of writing) to 9,000 ETH ($17.8 million) to open ocean prices, but all but three of the listed NFTs were sold for less than 500 ETH ($988,805). According to S-1, Canary Capital chooses the NFT to purchase, taking into account factors such as price, relative rarity, the perceived desirability of certain NFTS properties and properties, and overall collectible value. ”
The Pudgy Penguins NFT collection was released on Ethereum in July 2021. In May 2023, Pudgy Penguins signed with WME Talent Agency. Retailer Walmart (and others afterwards) has been carrying a line of stuffed toys called stuffed animals that have painted penguins since September.
Pengu Token was launched in Solana in December 2024, with 25.9% of the 888.9 billion tokens of NFT holders being distributed according to the owner’s NFT rarity and other community members. Its initial market capitalization was around $2.8 billion and was traded on Binance, Bybit and OKX.
Canary capital has faith in altcoins and their ETFs
Igloo, the parent company of Canary Capital, issued a statement to X, in part saying, “The stubborn penguins are the face of crypto, representing the mass adoption of innovation and blockchain technology. What is included in this submission is a strong test of its belief.”
Canary capital is the pioneer of Altcoin ETFS. I submitted my documents to the SEC to create an ETF that tracks Litecoin, Hedera, Solana and XRP.
Pengu has few use cases identified other than collector’s items. S-1 states. There is no guarantee that it will continue to gain value. It opened on March 20th for $0.00689 for $0.00689. Coingecko has a market capitalization of approximately $406 million and a trading volume of $161 million.
