Canary Capital Applies for Pudgy Penguins Token ETF Combining NFTs and Cryptocurrencies

On March 20, 2025, U.S. asset management firm Canary Capital submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Pudgy Penguins (PENGU) token ETF that integrates NFTs. If approved, it will become the first official cryptocurrency ETF in the U.S. to include NFTs. This application symbolizes a significant shift in U.S. cryptocurrency policy, with a loosening of regulations following Trump’s return to office, and a noticeable change in market sentiment.

Canary Leads with SUI Spot ETF, Then Pudgy Penguins ETF

On March 18, 2025, Canary Capital became the first to apply for the launch of the U.S.’s first SUI spot ETF. This follows the approval of the Bitcoin spot ETF, with institutional interest now expanding into other public chain native tokens.

On March 20, Canary followed up by submitting an application for the Pudgy Penguins ETF. According to the filing, this ETF will contain:

• Spot PENGU
• Pudgy Penguins NFTs
• ETH and SOL digital assets related to transfer operations

This means the ETF will not simply track token prices but will directly participate in the entire NFT ecosystem’s asset structure.

Industry reactions have been mixed, with analysts predicting that no one cares about the cryptocurrency ETF boom.

Industry Response: Analysts Predict Cryptocurrency ETFs Are a Joke

Despite the launch of multiple cryptocurrency ETFs, market reactions have been lukewarm.

Cryptocurrency researcher Alex Krüger posted on Twitter (X) on March 20: “After the announcement of the Pudgy Penguins ETF, the token price barely moved. Crypto ETFs are a joke now. Most of them are failing to attract funds and may even cause issuers to lose money.”

This reflects that some investors still have limited acceptance of ETFs based on non-mainstream tokens, NFTs, or meme coins.

After the announcement of the Pudgy Penguins ETF, the token price did not show much movement and instead fell by 1.9%.

Solana Double-Leverage Futures ETFs Launched, Spot ETF Still Awaiting Approval

Another asset management firm, Volatility Shares, officially launched two Solana futures ETFs on March 20, 2025:

• SOLZ: Tracks Solana performance (1x leverage)
• SOLT: Tracks Solana performance (2x leverage)

These two ETFs track the performance of SOL through financial derivative contracts. However, the true Solana spot ETF is still awaiting approval and has not yet entered the market.

Trump’s Presidency Spurs Crypto ETF Applications, But Market Acceptance Remains Unclear

Canary Capital’s two consecutive ETF applications indicate that U.S. asset managers are actively exploring new cryptocurrency investment products, even considering integrating NFT assets into ETF structures. In terms of policy, the regulatory environment has significantly loosened since Trump’s return to office, and more cryptocurrency ETFs are expected to emerge. However, it is still too early to say whether the market will accept these products.

(Pudgy Penguins Founder Shares Brand Revival and Future Vision, NFT and Meme Coins as the Golden Combo for the Future)

Risk Warning

Cryptocurrency investments are highly speculative and volatile. Prices can fluctuate dramatically, and you may lose all of your principal investment. Please carefully assess the risks involved.