Canary Capital Seeks to Bring PEPE ETF to US Market Despite Price Volatility

Canary Capital has updated its registration statement with the SEC for a proposed spot PEPE exchange-traded fund, aiming to give investors exposure to the asset through a traditional brokerage account. The PEPE price has dropped nearly 7% in the past 24 hours, trading at $0.0000054253 according to CoinGecko market data. The proposed ETF would track the CoinDesk PEPE Benchmark Rate 60m NY Rate, a rate based on trading activity from major PEPE platforms. The trust would hold PEPE directly, with BitGo Bank & Trust serving as custodian and U.S. Bank as cash custodian.

The filing also highlights risks associated with PEPE's volatility, concentrated ownership, and reliance on community sentiment. The ETF would be a passive investment vehicle, seeking to track PEPE's price without actively trading based on expected price movements. Canary's attempt to bring a PEPE-based exchange-traded product to the U.S. market may face further regulatory hurdles before approval.