Canary Capital has become the first asset manager to file for an exchange-traded fund that holds both cryptocurrency and non-fungible tokens.
According to a March 20 filing, Canary Capital plans to launch an ETF tracking the Pudgy Penguins ecosystem, combining exposure to the project’s governance token, PENGU (PENGU), along with a collection of its NFTs. It would also be the first US-listed ETF to hold NFTs directly if approved.
The filing outlines that the trust will hold spot PENGU as well as Pudgy Penguins NFTs, with additional digital assets like SOL (SOL) and ETH (ETH) included “as necessary or incidental” for transactions involving the fund’s primary holdings.
With this, Canary seeks to streamline operational needs such as purchasing, selling, or transferring assets within the trust.
Pudgy Penguins has become one of the most recognized NFT collections in the space, and it is known for its playful art and strong community presence. PENGU was launched in December as the ecosystem’s governance token, designed to give holders a say in the project’s direction.
Since its launch, PENGU has landed on platforms like Robinhood, but the price hasn’t held up—it’s currently down over 90% from its December all-time high. News of the ETF filing sparked a brief rally, but the gains faded within an hour.
Meanwhile, the filing adds another notch to Canary’s growing list of crypto ETF applications. Just days earlier, the firm submitted paperwork for a spot ETF tied to Sui, the native token of the Sui layer-1 network.
Last month, its Litecoin ETF was listed on the Depository Trust and Clearing Corporation under the ticker LTCC.
The pace of ETF filings has picked up across the board, especially since the SEC began shifting its stance under President Donald Trump’s new term.
Dozens of altcoin ETF proposals have hit the regulator’s desk in recent weeks, ranging from serious L1 contenders like Solana (SOL) to more speculative picks like Dogecoin and even Official Trump (TRUMP).
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