Canary Capital Pushes Meme Coins Deeper into Regulated Crypto Space

Canary Capital's latest filing with the US Securities and Exchange Commission (SEC) has sent shockwaves through the cryptocurrency market, as it seeks to launch a spot exchange-traded fund (ETF) tied to the PEPE cryptocurrency.

The proposed ETF would directly hold PEPE tokens, marking a significant shift in strategy for crypto ETFs. Until now, most efforts have centered on Bitcoin and Ethereum, but this proposal moves into the meme coin sector with strong liquidity and trading volumes.

According to the filing, the trust would own the underlying PEPE tokens directly, with a regulated custodian managing those holdings for the fund. The trust would also be allowed to hold up to 5% of its assets in Ether, but only for Ethereum network fees, not as an investment target.