CBOE Files for PENGU ETF, Boosting Meme Coin by 2%

The Chicago Board Options Exchange (CBOE) has submitted a 19b-4 filing to list Canary Capital’s PENGU ETF, which is designed to provide investors with exposure to both meme coins and non-fungible tokens (NFTs). This ETF will primarily invest in PENGU tokens, allocating between 80% and 95% of its total assets to this Solana-based meme coin. Additionally, the fund will invest 5% to 15% of its assets in Pudgy Penguin NFTs, which are based on the Ethereum blockchain.

The PENGU ETF will also hold small amounts of SOL and ETH for operational purposes, such as covering transaction fees and facilitating the purchase and sale of NFTs and tokens. These cryptocurrencies will be held solely for their utility within the fund and not for speculative purposes.

This development marks the second meme coin-based exchange-traded fund proposal to reach the 19b-4 stage, following those filed for Dogecoin. While multiple firms have submitted filings for DOGE ETFs, Canary Capital is the only asset manager to propose a PENGU-focused ETF. The filing comes months after Canary Capital submitted an S-1 registration statement to the Securities and Exchange Commission (SEC).

Industry reaction to the CBOE filing has been positive. Igloo, the company behind the Pudgy Penguin NFT collection, acknowledged the filing and highlighted it as a major step toward the inclusion of NFTs in regulated financial products. Following the announcement, the price of PENGU increased by nearly two percent, reaching $0.009832.

This move by CBOE and Canary Capital represents a significant development in the integration of meme coins and NFTs into traditional financial markets. The PENGU ETF offers institutional investors a unique opportunity to gain exposure to these emerging asset classes through a regulated and structured investment vehicle. The inclusion of both PENGU tokens and Pudgy Penguin NFTs in the fund's portfolio provides a diversified approach to investing in the digital asset space, while the operational holdings of SOL and ETH ensure the smooth functioning of the fund's transactions.