Asset management company Canary Capital has officially filed an Exchange-Traded Fund (ETF) application with the Securities and Exchange Commission (SEC) for PENGU, the governance token of Pudgy Penguins, a popular Non-Fungible Token (NFT) project.
The application, submitted on the 20th of March 2025, proposes to hold both the Spot PENGU token as well as the Puggy Penguins NFTs. If approved by the SEC, this would make it the first US-based ETF to hold an NFT, providing regulated institutional access to this emerging asset class.
As part of the filing, Canary Capital aims to offer investors access to the portfolio’s digital assets through a traditional brokerage account, eliminating the barriers and risks associated with directly acquiring and holding these assets. The trust also proposes to hold other digital assets, such as ETH and SOL that are directly or indirectly related to either the PENGU token or the Puggy Penguins NFTS.
PENGU price surges as market reacts
Following the ETF application announcement, the price of the PENGU token surged significantly, with trading volumes skyrocketing across major cryptocurrency exchanges, reflecting strong initial investor enthusiasm. However, these gains were later erased due to the ongoing market downturn.
The PENGU token launched on Solana in December 2025 and was primarily airdropped to Pudgy Penguins NFT holders, as well as members of the Ethereum and Solana communities, along with other select groups.
So far, Bitcoin and Ethereum are so far the only two digital assets that the US Securities and Exchange Commission (SEC) have approved an ETF.
However, many asset management firms have recently filed ETF applications for SOL, XRP, and other cryptocurrencies, as reported by U.Today. If the PENGU ETF is approved, it could mark a major turning point for NFTs and digital collectibles, many of which have struggled to gain institutional recognition as an asset class.
Vladislav Sopov
Dan Burgin