Investment firm Canary Capital officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on Wednesday, seeking to launch an exchange-traded fund (ETF) that tracks the spot price of the meme coin PEPE.
According to the filing, PEPE was launched in April 2023 and has a total supply exceeding 420 trillion tokens. In the document, Canary Capital explicitly notes that the meme coin itself possesses no inherent utility.
Expanding the Boundaries of Crypto ETFs
Following the regulatory approval and successful listing of ETFs for mainstream cryptocurrencies like Bitcoin and Ethereum, asset managers are now testing the SEC's appetite for niche crypto assets. Canary Capital has previously pursued similar strategies, having filed applications for ETFs targeting other meme coins such as MOG and Pengu last year.
As the cryptocurrency market heats up, competition is intensifying. This Wednesday, Morgan Stanley launched its own spot Bitcoin ETF, directly challenging BlackRock’s market leadership in the sector.
According to price tracking data from The Block, PEPE had a market capitalization of approximately $1.5 billion and was trading at $0.0000036 as of 5:49 p.m. Wednesday. This filing marks a significant move by issuers to expand into the more volatile and speculative meme coin market.
For now, the SEC's stance on approving such high-risk crypto ETFs remains a focal point for the market. The regulator has previously delayed or rejected various crypto-related financial products, citing concerns over investor protection and potential market manipulation.