SEC Reviews Canary PENGU ETF Listing Driving 100% PENGU Coin Surge

The U.S. Securities and Exchange Commission (SEC) is currently reviewing a proposed rule change submitted by the Cboe BZX Exchange to list and trade shares of the Canary PENGU ETF. This development has sparked significant interest in the cryptocurrency market, particularly driving a surge in the value of PENGU Coin. The Canary PENGU ETF, if approved, would cover tokens and Pudgy Penguins NFTs, marking a notable expansion in the range of digital assets available to investors through regulated financial instruments.

The filing of the 19b-4 application with the SEC is a critical step in the process of bringing the Canary PENGU ETF to market. This application proposes a rule change that would allow the exchange to list and trade shares of the ETF, providing investors with a new avenue to gain exposure to the digital asset market. The ETF's focus on tokens and Pudgy Penguins NFTs underscores the growing interest in non-fungible tokens (NFTs) and their potential as investment assets.

The review by the SEC is a significant milestone for the Canary PENGU ETF and the broader cryptocurrency market. The SEC's approval process involves a thorough examination of the proposed ETF's structure, compliance with regulatory requirements, and potential impact on investors. The outcome of this review will determine whether the Canary PENGU ETF can proceed to the next stage of its development and ultimately be listed on the Cboe BZX Exchange.

The surge in the value of PENGU Coin following the SEC's review of the Canary PENGU ETF highlights the market's anticipation of regulatory approval. Investors are increasingly recognizing the potential of digital assets and the role that regulated financial instruments can play in facilitating their adoption. The Canary PENGU ETF, if approved, would provide a regulated and accessible way for investors to gain exposure to tokens and NFTs, potentially driving further growth in the digital asset market.

Form 19b-4 requests a regulatory change to allow fund shares to be traded like traditional securities. The document emphasizes that the net asset value of PENGU coin will be calculated daily, the creation-redemption process will be managed through authorized participants, and investors will be informed via low-latency data feeds. To maintain trading flexibility, the remaining assets will be kept in Solana and a limited number of additional cryptocurrencies. A constrained balance of SOL coins will also be maintained to cover transaction costs.

Upon publication in the Federal Register by the SEC, a 45-day initial review period begins for the application but can extend the decision timeframe up to 240 days if necessary. Canary Capital responded to regulatory transparency demands, referencing President Donald Trump’s vision for leadership in cryptocurrencies. Details of the fund’s custody and audit procedures were thoroughly provided.

ETF analyst Eric Balchunas deemed the approval likelihood “high,” based on previous Solana-focused ETF examples. Balchunas also noted the fund’s unique NFT component as a point of interest for SEC examination. With a fully diluted value of $745 million, PENGU could support the creation-redemption mechanism of the fund, facilitating institutional portfolios’ entry into the memecoin market, and potentially increasing trading depth.

Currently, PENGU coin is traded on major centralized exchanges, as well as leading decentralized exchanges. On-chain data indicates large wallets accumulating PENGU coins alongside their NFT collections. Once the ETF launches, retail investors will have the opportunity to invest in PENGU through brokerage accounts. Experts suggest that this access could gradually reduce price volatility and that the expansion of liquidity centers might limit slippage in high-volume trades.