Key Takeaways: The fund merges distinct digital tokens with NFT collectibles for a mixed asset approach. It relies on established blockchain currencies to facilitate transactions. This regulated product offers a new method for investors to combine various crypto holdings. The filing mirrors a growing trend toward unified digital asset solutions. Canary Capital filed its S-1 registration statement on Thursday with the U.S. Securities and Exchange Commission for a new ETF that aims to invest in the $PENGU meme coin and Pudgy Penguins non-fungible tokens. If approved, this would be the first U.S. ETF to hold NFTs directly. Pudgy Penguins Floor Price Jumps as Canary Capital Proposes $PENGU ETF According to the filing , the ETF seeks to expose investors to the $PENGU token, which launched in December, and Pudgy Penguins NFTs. The fund will also hold other digital assets, including Solana (SOL) and Ethereum (ETH), necessary for transactions involving PENGU and the NFTs. This structure represents a rare combination of cryptocurrency and NFTs within a single regulated investment vehicle. CANARY FILES S-1 FOR FIRST OF ITS KIND $PENGU AND PUDGY PENGUINS NFT ETF — *Walter Bloomberg (@DeItaone) March 20, 2025 The Pudgy Penguins NFT collection has seen renewed interest following the ETF announcement, with its floor price rising above 10 ETH. Meanwhile, the $PENGU token, tied to the Pudgy Penguins ecosystem, currently holds a market capitalization of approximately $438 million, according to CoinGecko data from March 20. The filing comes amid a wave of new ETF applications focused on digital assets, including altcoins and memecoins. However, while Bitcoin and Ethereum spot ETFs have gained regulatory traction, products centered on smaller crypto assets and NFTs face a more uncertain path. Some industry analysts remain skeptical about the demand for such funds. “Pengu ETF announced. Price barely goes up. New ETFs for crypto assets have become an irrelevant joke,” crypto researcher Alex Krüger said in a March 20 post on X , suggesting that most crypto ETFs may struggle to attract assets under management. Despite the skepticism, the proposed ETF could offer a new avenue for institutional and retail investors looking to gain exposure to the Pudgy Penguins ecosystem through traditional financial channels. The SEC will now review the filing, though there is no set timeline for approval. Canary Capital Pushes for Sui ETF as Crypto ETF Filings Surge Canary Capital is doubling down on its crypto ETF ambitions—fresh off filing for a Pudgy Penguins NFT ETF, the firm has also applied for a spot Sui ETF to expose investors to the Sui Network’s native token. If approved, it would be the first ETF tied to Sui, with a $7.4 billion market cap and ranking among the top 25 cryptocurrencies. BREAKING @SuiNetwork ETF is coming soon! Canary Capital has filed an SUI ETF with the SEC in the U.S. pic.twitter.com/fTAIWpupH1 — Sui Corner (@SuiCorner) March 17, 2025 This latest move adds to Canary’s growing list of ETF filings—bringing its total to six—and reflects a broader industry push to expand beyond Bitcoin and Ethereum, which saw spot ETFs approved in 2024. With the SEC now reviewing applications for Solana, XRP, Dogecoin, and even memecoins like Official Trump, the race for new investment products is heating up . Since President Donald Trump took office, optimism around crypto regulation has surged. The SEC has softened its stance, dropping enforcement actions and reconsidering custody rules for digital assets. This shift has led issuers to anticipate a more favorable regulatory environment. Meanwhile, demand for existing crypto ETFs remains strong. Bitcoin ETFs recorded a single-day inflow of $274.59 million on March 17 , while Ethereum products saw continued outflows. With the SEC’s final decisions on multiple ETF applications expected in the coming months, demand for regulated crypto investment products is rapidly increasing. A final ruling on these filings could mark a defining moment for integrating NFTs and smaller crypto assets into mainstream finance—testing both investor appetite and regulatory flexibility. As more projects push for regulated pathways, the relationship between traditional markets and digital assets may evolve faster than ever, raising the stakes for pioneers, policymakers, and participants alike. Frequently Asked Questions (FAQs) How does the ETF structure differ from traditional crypto funds? This ETF structure brings together digital tokens and collectible art in one product, unlike many funds that focus solely on coins. It relies on blockchain assets to support transactions within a regulated framework. What does the new filing indicate about investor interest in niche digital assets? The filing signals a growing appetite among investors for a mix of digital tokens and art collectibles. It shows that buyers are considering regulated avenues to diversify exposure in the evolving crypto market. What role could this ETF play in future digital asset portfolios? The product may serve as a starting point for investors seeking to blend diverse digital assets in a regulated framework. It offers a way to mix tokenized art with digital currencies in a balanced portfolio. The post Canary Files S-1 for $PENGU and Pudgy Penguins NFT ETF appeared first on Cryptonews .
