Canary Capital has submitted a registration submitting to the US Securities and Change Fee (SEC) for the launch of the first-ever Pengu exchange-traded fund (ETF). This transfer provides to the rising checklist of crypto asset managers in search of regulatory approval for digital asset-based ETFs.
In accordance with the submitting printed on Thursday, the proposed ETF will spend money on the PENGU token, which is the official token of the Pudgy Penguins NFT undertaking, in addition to in Pudgy Penguins NFTs themselves. The submitting additionally states that the ETF will maintain different digital property, together with Ethereum (ETH) and Solana (SOL), to help buying and selling and transfers.
Canary Capital Information for Pengu ETF
Within the registration assertion, the ETF is outlined as an funding belief that invests in digital property reminiscent of PENGU tokens and Pudgy Penguins NFTs, amongst others. Relating to these holdings, Canary Capital emphasised that these ones are essential for monitoring the token and the NFT property.
If launched, the ETF will enable traders to trace the value of PENGU and different NFTs in its portfolio with out proudly owning or internet hosting them as bodily property. The belief may comprise different property within the type of digital media for the shopping for and promoting moreover conversion and redemption of the fund.
“Different non-security digital property owned by the belief embrace SOL and ETH which may be obligatory or incidental,” the submitting added.
The Pudgy Penguins undertaking launched the Ethereum-linked PENGU token in December. The undertaking has been common within the crypto sphere as a set of NFT and social networking. Though PENGU was first developed on Ethereum, there’s a rising sentiment that it may be thought to be a Solana meme coin since most of its buying and selling exercise transpire in Solana platforms.
PENGU Market Response and Value Motion
Following the ETF announcement, the PENGU token noticed a pointy 10% value improve throughout early buying and selling. It broke above earlier resistance ranges and moved previous the Ichimoku cloud, indicating a potential shift in momentum.
The Relative Energy Index (RSI) for PENGU moved from 44.86 to 62 shortly after the information, indicating elevated shopping for exercise. The RSI stays beneath the overbought stage of 70, suggesting that additional good points are nonetheless potential.
Lots of the analysts at the moment are specializing in the $0.0093 as the subsequent stage of resistance backed by the Robinhood itemizing final week. A breakout above that stage means the token might be buying and selling above the $0.010 mark, the primary time in a month. Nevertheless, if the momentum disappears, the token could fall again to $ 0.0062 help space.
Rising Checklist of Crypto ETF Purposes
Canary Capital is just not the one agency pursuing ETF approval for non-traditional digital property. In latest months, a number of asset managers have submitted filings for altcoin ETFs, together with ones targeted on Dogecoin (DOGE), Sui, Hedera, and BONK. These filings adopted the approval of spot Bitcoin and Ethereum ETFs by the SEC in 2024.
Regardless of the latest pattern, the SEC has delayed selections on many of those purposes, particularly these involving meme cash and smaller tokens. Some market individuals have raised questions on whether or not ETFs for meme cash and NFTs will meet regulatory requirements.
“The chance of approval for these funds stays unclear because of excessive volatility and restricted buying and selling historical past,” a press release from the submitting added.
Blended Reactions From the Crypto Neighborhood On Pengu ETF
The ETF proposal has sparked totally different responses from merchants and analysts on-line. Some have raised doubts about investor demand for a fund tied to a meme coin and NFT undertaking that’s lower than six months outdated.
Social media commentator @beast_ico wrote, “We don’t want ETFs for ghost chains, a lot much less sub 6 month outdated memecoins.” Others famous that regardless of the ETF information, the value response was short-lived, and sustained momentum could rely upon broader market tendencies.
Business observer Alex Krüger commented,
“New ETFs for crypto property have grow to be an irrelevant joke,” citing weak asset inflows into not too long ago launched funds.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Identified for his incisive evaluation and insightful content material, he possesses a powerful command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
Disclaimer: The offered content material could embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.
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