Canary Capital Files for Spot Pepe ETF Listing

U.S. asset manager Canary Capital is moving forward with plans to list a spot exchange-traded fund (ETF) based on the memecoin Pepe. In an amended S-1 registration statement filed with the U.S. Securities and Exchange Commission (SEC) on October 2, Canary submitted its application to list the Canary Pepe ETF on Cboe BZX, an exchange operated by Cboe Global Markets. The fund is structured as a trust that will hold Pepe directly, with the goal of reflecting the token's price performance after deducting operating expenses and other liabilities.

The fund's net asset value (NAV) will be calculated using CoinDesk's Pepe Benchmark Rate 60 Minute New York, which sets the reference price for valuing the ETF's holdings. However, because fees and other costs will be deducted, the fund's returns will not exactly match Pepe's price moves. This warning was included in Canary's initial filing in April.

Pepe is an Ethereum-based memecoin launched in 2023, based on the internet-famous frog character of the same name. Its price is influenced more by online visibility and community interest than by technological utility. If the ETF is listed, investors will be able to gain exposure to Pepe through the stock market without buying the token directly on a crypto exchange or storing it in a separate wallet.