Canary Capital has filed a registration statement for the Canary PEPE ETF, a proposed exchange-traded fund designed to offer investors direct exposure to PEPE through traditional brokerage accounts.
The filing states the trust would hold spot PEPE, calculate its net asset value based on major PEPE trading venues, and issue shares in 10,000 share baskets.
The prospectus describes PEPE as a highly speculative asset driven by online popularity and social sentiment. Launched on Ethereum in April 2023, the token is an ERC-20 standard. The trust may initially hold up to 5% in ETH to cover transaction fees.
Canary's structure follows the established spot crypto ETF model, holding the underlying token directly without derivatives or leverage. A custodian will safeguard assets, though investors are cautioned about potential total loss.
The filing highlights risks associated with the relatively new and largely unregulated PEPE spot markets, including volatility, manipulation concerns, custody risks, and Ethereum network disruptions.
This filing marks a significant development as meme coin ETFs are no longer theoretical, with Grayscale’s Dogecoin product already active in the U.S. market. The Grayscale Dogecoin Trust ETF trades under the ticker GDOG on NYSE Arca.
Other meme coins like BONK are also entering the filing pipeline, with Tuttle Capital having previously filed for a Bonk Income Blast ETF and a leveraged 2X Long Bonk Daily Target ETF.