Canary Capital Files for First-Ever Spot Pepe Coin ETF with SEC

Key Insights:

• Canary Capital files an S-1 with the SEC to launch the first US-based Pepe Coin ETF.
• Firm expands into meme coins beyond Bitcoin and Ethereum.
• Weak demand and market pressure limit PEPE’s price reaction.

Asset manager Canary Capital has taken a bold move into the meme coin market. As per the latest crypto news, the investment manager has filed with the US Securities and Exchange Commission (SEC) to launch a Pepe Coin ETF. If approved, this will become the first-ever US-based PEPE exchange-traded fund.

This move marks a major development within the meme coin space. It highlights institutional interest in crypto beyond major tokens, such as Bitcoin, Ethereum, XRP, and Solana.

Canary Capital to Launch Pepe Coin ETF

The latest reports reveal that investment giant Canary Capital is expanding its crypto exchange-traded fund offerings with a proposed spot Pepe Coin ETF. The platform has reportedly filed an S-1 form with the US SEC to launch the inaugural PEPE fund.

As per the SEC filing, the Canary Pepe Coin ETF plans to hold the meme coin directly on the Ethereum network. It will be structured similarly to current spot crypto ETFs. The platform made it clear that the PEPE ETF will not hold ETH for investment purposes. The filing noted,

“The Trust’s investment objective is to seek to provide exposure to the price of PEPE Coin (“PEPE”) held by the Trust, less the expenses of the Trust’s operations and other liabilities.”

The ETF will create and redeem shares in batches of 10,000 units. However, details such as the exchange where it will be listed, the pricing method, and the custodian responsible for holding the digital assets have not yet been disclosed.

Meme Coin ETF Push Grows Despite Weak Investor Demand

It is worth noting that Canary Capital is looking beyond the PEPE token. The firm has already filed for several other crypto ETFs. Also, the firm has applied for other meme coins, including Mog Coin (MOG), Pudgy Penguins (PENGU), and Axelar (AXL). From the above, it shows that the investment firm is venturing into other types of cryptocurrencies beyond focusing on well-known ones.

As of now, Dogecoin is the only meme coin with active ETFs in the United States. Three spot ETFs from Grayscale, 21Shares, and Bitwise are currently trading on major exchanges like the NYSE and Nasdaq.

However, investor interest in meme coin ETFs has been relatively low. SoSoValue data shows that total net inflows into these Dogecoin ETFs have reached just $7.64 million as of April 8. The daily trading volume hovers around $209,000.

Pepe Coin Price Drops Despite ETF Filing

Despite Canary Capital’s PEPE ETF filing, the Pepe Coin price has declined by more than 6% in a day. This indicates that the Pepe Coin ETF filing had a limited positive impact on the meme coin’s price.

Currently trading at $0.000003464, Pepe Coin has surged by 4.4% over the past week and 3.2% over the past month. Thus, even if daily performance is negative, the token shows positive signals on a weekly and monthly basis.

The major reason for the current slowdown in the PEPE token price is its rejection at a key resistance level around $0.00000378 after failing to sustain its breakout. The trading volume has also dropped, signaling weak buying momentum.

At the same time, the broader market has also turned cautious after yesterday’s recovery. As investors once again moved away from riskier assets, the Bitcoin ETFs saw significant outflows. This has further added pressure on meme coins like Pepe Coin.