Canary Capital Pushes Ahead with Pepe Spot ETF Plans
Canary Capital is pushing forward with its plans to list a spot exchange-traded fund (ETF) based on the memecoin Pepe. The U.S. asset manager submitted an amended S-1 registration statement to the Securities and Exchange Commission on October 2, following up on its initial filing in April.
The Canary Pepe ETF will be structured as a trust that holds Pepe directly, aiming to reflect the token's price performance after deducting operating expenses and other liabilities. If listed, investors can gain exposure to Pepe through the stock market without buying it directly on a crypto exchange or storing it in a separate wallet.
The fund will use CoinDesk's Pepe Benchmark Rate 60 Minute New York to calculate its net asset value (NAV). However, fees and other costs will be deducted, meaning the fund's returns won't exactly match Pepe's price moves. Canary warned that Pepe's price and the ETF's value could decline sharply if market interest fades or social-media sentiment shifts.