Canary Capital has submitted a formal application to the US Securities and Exchange Commission for an ETF backed by digital collectibles. The proposed fund includes exposure to the PENGU token and Pudgy Penguins NFTs.
The ETF application was officially filed on March 20, 2025. It would become the first US-based exchange-traded fund to hold an NFT as part of its structure if approved.
The trust aims to include the spot PENGU token, Pudgy Penguins NFTs, and additional digital assets such as Ethereum and Solana. These assets are either directly or indirectly related to the Pudgy Penguins ecosystem.
The filing states that the ETF will offer exposure through traditional brokerage accounts. This approach is intended to reduce the risks associated with directly managing digital assets.
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ETF Proposal Brings Institutional Spotlight to Digital Collectibles
The PENGU token entered the market through its launch on the Solana blockchain in December of 2025. The PENGU token distributed itself through an air distribution system to Pudgy Penguins NFT possessors and a selection of Ethereum and Solana blockchain users.
A successful implementation of the ETF would advance NFT-supported financial product technology to the next phase. The SEC has only approved Bitcoin and Ethereum ETFs in the United States.
The digital asset ETF applications from Canary Capital serve as the latest series of digital asset filings, including SOL and XRP products. The newest SEC filing aims to create institutional access opportunities for institutional investors to acquire blockchain-based assets.
Through its defined parameters, the new trust functions to secure legally regulated collections of currency-type tokens and non-standard assets. The proposed asset structure enables investors to access crypto investments through financial channels instead of performing wallet administration and utilizing decentralized sites.
The proposed product introduces a test scenario for developers working on combination investment tools that unite tokens and NFTs. The approval of this fund would create a vital standard for US regulatory rules of digital asset funds.
Conclusion
Canary Capital’s ETF filing reflects a growing interest in merging traditional finance with digital collectibles. Both crypto and institutional market participants will closely monitor the SEC’s response.
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