Canary Capital Seeks to List Spot PEPE ETF
Summary
- U.S. asset manager Canary Capital is seeking to list a spot ETF based on meme coin PEPE.
- The product is a spot ETF in which a trust would hold PEPE directly, with the goal of reflecting PEPE price changes after deducting operating expenses and other liabilities.
- Canary Capital warned that PEPE's price and the ETF's value could fall sharply if market interest fades or social media sentiment changes.
Forecast Trend Report by Period
U.S. asset manager Canary Capital is seeking to list a spot exchange-traded fund tied to the meme coin PEPE.
A filing dated Oct. 2 shows Canary submitted an amended S-1 registration statement to the U.S. Securities and Exchange Commission for the Canary PEPE ETF. The proposed listing venue is Cboe BZX, part of the Cboe exchange group. The move continues the launch process after the firm filed its initial registration documents in April.
The product is a spot ETF that would hold PEPE directly through a trust. Its objective is to reflect changes in PEPE's price after deducting operating expenses and other liabilities. If the fund is listed, investors would be able to gain exposure to the token through the securities market without buying PEPE on a crypto exchange or holding it in a separate wallet.
The fund's net asset value will be calculated using CoinDesk's Pepe Benchmark Rate 60 Minute New York. That benchmark sets the reference price for valuing the ETF's holdings. Because fees and other costs are deducted, the fund's returns would not match PEPE's price movements exactly.
PEPE is an Ethereum-based meme coin launched in 2023 and based on the internet-famous frog character of the same name. Its price is influenced more by online visibility and community attention than by technical utility. In its initial filing, Canary warned that both PEPE's price and the ETF's value could fall sharply if market interest fades or sentiment on social media shifts.
