Canary Capital Files for First US ETF Including NFTs

Canary Capital, an asset management firm, has submitted a filing to list an exchange-traded fund (ETF) that will hold PENGU, the governance token of the Pudgy Penguins non-fungible token (NFT) project. This filing is part of a broader trend of new investment products tied to spot cryptocurrencies, including various altcoins and memecoins, being proposed in the United States.

The proposed ETF aims to hold spot PENGU tokens as well as a selection of Pudgy Penguins NFTs. If approved, it would be the first ETF in the US to include NFTs in its holdings. Additionally, the ETF will hold other digital assets such as SOL and ETH, which are necessary for the purchase, sale, and transfer of PENGU and Pudgy Penguins NFTs.

Pudgy Penguins, launched in December, has a market capitalization of approximately $438 million as of March 20. This NFT project is among the most popular in the market, reflecting a growing interest in digital collectibles and governance tokens.

Canary Capital's filing for the PENGU ETF follows a previous submission on March 18, where the firm proposed the first US ETF holding SUI, the native token of the Sui layer-1 blockchain network. This indicates a strategic move by Canary Capital to diversify its offerings in the cryptocurrency space.

The US Securities and Exchange Commission has seen a surge in filings for new crypto investment products since the current administration took office. These filings include proposals for ETFs tied to various cryptocurrencies, such as Solana (SOL), XRP (XRP), Dogecoin (DOGE), and Official Trump (TRUMP).

However, some industry analysts express skepticism about the potential success of ETFs holding non-core cryptocurrencies. Crypto researcher Alex Krüger, for instance, noted that new ETFs for crypto assets have become less impactful, with most failing to attract significant assets under management (AUM) and potentially costing issuers money.

Despite the skepticism, the current administration has shown a more favorable stance towards digital assets, promising to position the country as a global leader in the crypto industry. This shift in policy contrasts with the previous administration, which saw over 100 enforcement actions against crypto firms.

The filing for the PENGU ETF by Canary Capital represents a significant development in the cryptocurrency investment landscape. If approved, it would mark a milestone as the first US ETF to include NFTs, potentially opening new avenues for investors interested in digital collectibles and governance tokens. The success of such ETFs will depend on market demand and regulatory approval, but it underscores the growing interest in diversified crypto investment products.