Canary Capital Files for $ Pengen and Pudgy Penguins NFTS ETF

The US investment firm Canary Capital has presented to the stock and values ​​commission (SEC) to launch a new fund quoted by the exchange (ETF) that would combine cryptocurrencies and nft in a single investment product.

The Pengui ETF Penario Fund proposed would include the token of $ Pechegm, issued in the Solana block chain, and digital assets of the nft collection of penguins required with headquarters in ethereum, which mark the first known attempt to include nft in an ETF regulated in the United States.

The presentation of the SEC appeared on Thursday, but does not provide a schedule for review or approval.

What is an ETF?

A fund quoted by Exchange (ETF) is a financial product that tracks the performance of an asset or group of specific assets.

ETFs are negotiated in stock exchanges and can be purchased and sold as individual actions. In general, they are used to provide investors access to specific sectors, products or indexes without requiring them to directly buy or manage the underlying assets.

In the context of cryptocurrency, ETFs can provide exposure to digital tokens without demanding that investors handle wallets, exchanges or custody directly.

Why is this significant?

If approved, this would be the first ETF in the USA. In including nft as part of its portfolio. The ETF of previous digital assets, such as those that track bitcoin or ethereum, have only included fungible tokens.

nfts are inherently different from cryptocurrencies due to their unique nature and variable prices. Including them in a regulated investment fund has novel challenges, which include how to value, store and audit said assets. The SEC has not yet issued a specific guide on nft -based ETFs.

Other companies, including Vaneck and Bitwise, have presented proposals for ETF linked to cryptocurrencies such as Solana, Litecoin and XRP.