Asset management firm Canary Capital has filed an application with the US Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) for the PEPE memecoin. The proposed CANARY PEPE ETF would track the performance of Pepe ([PEPE]), with all trust assets held by a custodian. The fund may allocate up to 5% of assets to Ether ([ETH]) for transaction fees on the Ethereum network.
Canary Capital, already offering ETFs for XRP, Solana, Hedera, and Sei, has pursued several niche crypto ETF products. This filing follows a previous attempt in November 2025 to launch an ETF for the Mog Coin memecoin. PEPE, a memecoin based on Pepe the Frog, gained significant social media traction in 2024. Despite its popularity, the PEPE token is down nearly 85% from its December 2024 all-time high. Ownership of PEPE is notably concentrated, with the ten largest wallets holding approximately 41% of the circulating supply.
The launch of new crypto ETFs is seen by some analysts as crucial for future altcoin cycles. However, perspectives vary, with some experts predicting a shift towards yield-bearing digital instruments and revenue-capturing crypto assets rather than traditional altcoin cycles. The evolving regulatory landscape in the US for digital assets like Pepe and the Ethereum network may impact future demand and use.