An asset management firm has submitted a proposal to launch an exchange-traded fund (ETF) that will include Pengu (PENGU), the governance token associated with the Pudgy Penguins non-fungible token (NFT) initiative, according to recent regulatory filings.
This ETF represents the latest addition to a growing list of applications for new investment products in the U.S. linked to spot cryptocurrencies, encompassing altcoins and memecoins.
The submitted documents indicate that the ETF aims to incorporate spot PENGU and several Pudgy Penguins NFTs. If granted approval, it would mark the first U.S. ETF to feature NFTs.
Moreover, the filing stated that “[t]he Trust will also include other digital assets, such as SOL and ETH, that are essential or complementary to the acquisition, sale, and transfer of the Trust’s PENGU and Pudgy Penguins NFTs.”
Since its launch in December, PUDGY boasts an approximate market capitalization of $438 million as of March 20.
On March 18, the firm also filed to introduce the first U.S. ETF focused on Sui (SUI), the native token of the Sui layer-1 blockchain network.
Pudgy Penguins ranks among the leading NFT brands. Source: Cointelegraph
Related: New proposal for the first Sui ETF in recent SEC application
Shifts in Policy
The U.S. Securities and Exchange Commission has recognized numerous submissions for new crypto investment vehicles since the beginning of President Donald Trump’s term on January 20.
This includes proposed ETF filings for various native layer-1 tokens such as Solana (SOL) and XRP, along with memecoins like Dogecoin (DOGE) and Official Trump (TRUMP).
Some analysts in the industry express doubt regarding the potential interest in ETFs that hold non-core cryptocurrencies among traditional investors.
“The announcement of the Pengu ETF barely affected the price. New ETFs for crypto assets have become largely irrelevant,” remarked crypto researcher Alex Krüger in a post on March 20. “Most crypto ETFs are unlikely to draw significant assets under management and may end up costing issuers.”
Since commencing his second term, Trump has shifted the federal government’s approach toward digital assets, vowing to establish the U.S. as “the world’s crypto capital.”
In contrast, under former President Joe Biden, regulators took over 100 enforcement actions against crypto companies.
On March 20, another asset manager introduced two Solana futures ETFs, namely the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT).
These ETFs utilize financial derivatives to mirror SOL’s performance with one- and two-time leverage, respectively, while spot SOL ETFs are still pending regulatory approval.
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