Meme token PENGU rallied briefly on Thursday as asset manager Canary Capital filed to launch a PENGU exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). The fund aims to track the price of the PENGU token and Pudgy Penguins NFTs.
Asset manager Canary Capital filed an S-1 registration statement with the SEC for the launch of the first-ever PENGU ETF.
The filing stated that the ETF's objective is to provide capital appreciation. To achieve this goal, the fund aims to invest in both the PENGU token and Pudgy Penguins NFTs. This means that the fund will allow investors to gain exposure to the Pudgy Penguins NFTs' value and the PENGU token's price.
The filing also noted that the firm will hold Solana (SOL) and Ethereum (ETH) tokens in the PENGU Trust.
"The Trust will also hold other digital assets, such as SOL and ETH, that are necessary or incidental to the purchase, sale and transfer of the Trust's PENGU and Pudgy Penguins NFTs," the filing states.
PENGU becomes the latest in a growing list of meme tokens awaiting ETF approval. These include Dogecoin (DOGE), BONK and TRUMP tokens, which asset managers filed for following President Donald Trump's inauguration.
The likelihood of a meme coin ETF approval is still uncertain as their high volatility may influence how regulators perceive them.
The SEC recently postponed its decision on several altcoin ETFs, including DOGE and BONK.
PENGU rose 10% following the announcement but has since retraced.