SEC Greenlights Canary’s Groundbreaking NFT ETF – Fueled by Pudgy Penguins Mania

The SEC just blinked—and crypto's never going back.

Canary's audacious NFT ETF, backed by the internet's favorite chubby birds, just cleared regulatory review. This isn't your grandpa's index fund.

When Memes Meet Main Street

Pudgy Penguins—the cartoon avatars that turned JPEG speculation into a $500M empire—are now propping up Wall Street's latest gamble. The ETF structure lets institutional money ride the NFT wave without actually understanding blockchain. Classic finance.

The Compliance Tightrope

SEC approval came with the usual hand-wringing about 'investor protection'—as if traditional markets haven't been casino floors for decades. The fund's prospectus reportedly includes a 50-page risk disclosure (Section 12B: 'Penguin meme fatigue').

This changes everything. Or nothing. Either way, the suits finally admit crypto's not going away—even if they need cartoon animals to make it palatable.

TLDR

• SEC Reviews First NFT-Memecoin ETF: PENGU Poised to Enter Wall Street

• Canary’s PENGU ETF Blends NFTs, Memecoins & Crypto for a Web3 Fund Debut

• Pudgy Penguins Meet Wall Street: PENGU ETF Could Reshape Digital Investing

• PENGU ETF Mixes Memecoins and NFTs in Bold New Crypto Investment Product

• Crypto Meets Finance: SEC Eyes First ETF Tied to PENGU and Pudgy Penguins

The SEC has officially acknowledged the Canary Spot PENGU ETF application, marking a major step for crypto-linked funds. This proposed fund seeks to combine PENGU, a Solana-based memecoin, with Pudgy Penguins NFTs and top cryptocurrencies. As Wall Street evaluates its first NFT ETF, market participants anticipate a defining moment for the intersection of digital assets and traditional finance.

PENGU ETF Signals New Era for Crypto-Backed Funds

The Canary Spot PENGU ETF aims to allocate 80-95% of its portfolio to PENGU, the core memecoin of the Pudgy Penguins brand. The remaining 5-15% will consist of Pudgy Penguins NFTs, with some exposure to Solana and ethereum for liquidity. This structure signals an active approach, allowing the fund to rebalance its holdings as market dynamics shift.

🚨LATEST: @SECGov has acknowledged filing for Canary Spot $PENGU ETF, a solana-based memecoin. pic.twitter.com/NeN1FaRDyj

— SolanaFloor (@SolanaFloor) July 9, 2025

Canary Capital Group, the ETF sponsor, filed as part of its broader strategy to introduce Web3-native investment products. The fund structure allows public market access to digital assets, removing technical barriers of blockchain ownership. This approach offers a regulated vehicle tied to PENGU and its associated NFT brand.

The ETF seeks to list on a major U.S. exchange, though the specific venue remains undisclosed. If approved, it WOULD be the first publicly traded fund combining NFTs and a memecoin. The PENGU ETF represents a bold fusion of Web3 culture and Wall Street instruments.

Pudgy Penguins NFTs Bring Cultural IP to Financial Markets

Pudgy Penguins NFTs FORM the backbone of the project’s brand ecosystem. The collection of 8,888 cartoon penguins was built strong through licensed merchandise. These NFTs now appear in Walmart and Target stores through Pudgy Toys, extending their cultural footprint.

The ETF plans to hold specific NFTs based on rarity, visual appeal and market value of traits. The fund’s managers will actively evaluate and rotate these holdings to maintain optimal exposure. The inclusion of NFTs in a regulated ETF marks an unconventional but notable shift in financial asset recognition.

This MOVE reflects the rise of NFTs as assets with perceived value beyond digital art. By integrating these tokens into a tradable product, the fund provides exposure without requiring direct NFT ownership. Pudgy Penguins now carry weight not only in culture but potentially in capital markets.

PENGU Strengthens Utility Through ETF Inclusion

PENGU is the official Solana-based token that supports the broader Pudgy Penguins ecosystem. The token provides utility and governance across games, merchandise, and NFT interactions. It has grown to a market cap of $969.99 million, gaining traction in both crypto and retail circles.

The ETF’s primary allocation to PENGU signals confidence in its role as the project’s foundational asset. Its position in the portfolio demonstrates how digital-native tokens are gaining institutional interest. If the SEC approves the ETF, PENGU could become the first memecoin directly tied to a regulated investment product.

The inclusion of PENGU aligns with Canary Capital’s strategy to introduce novel crypto-based ETFs beyond Bitcoin and Ethereum. By packaging the token with NFTs and blue-chip blockchains, the fund offers a hybrid structure. This may help legitimize memecoins as part of broader financial strategies.