Canary Capital seeks SEC approval for spot PEPE ETF

Canary Capital has filed paperwork with the U.S. Securities and Exchange Commission seeking approval to launch a spot exchange-traded fund that would track PEPE, the meme-themed cryptocurrency. The filing requests permission to list and sell shares of a fund designed to give investors exposure to the token’s market price through a U.S. exchange-traded product.

The proposed ETF would hold the underlying PEPE tokens or use mechanisms intended to mirror the token’s spot price so that share performance aligns with movements in PEPE’s market value. The filing does not name a proposed trading venue, ticker symbol or a timeline for a potential listing.

The application details arrangements for custody of the token, valuation procedures and processes to enable investor access through standard brokerage accounts rather than direct crypto exchanges or wallets. It indicates that a custodian would be required to secure token holdings and that valuation methods would translate token prices into ETF share prices.

The SEC review will assess whether the product meets investor protection and market integrity requirements. The agency typically examines custody arrangements, how prices are sourced and calculated, whether surveillance-sharing agreements exist with trading venues, and whether fund disclosures are adequate for retail investors. The SEC can approve the filing, request revisions or deny the application.

Regulatory and market concerns cited in the filing and industry commentary include the risk of market manipulation, custody vulnerabilities and the high volatility of smaller tokens. PEPE, a memecoin launched in 2023, has experienced rapid price swings and attracted speculative retail trading, factors noted for their potential impact on a fund backed by the token.

Canary Capital’s application follows broader interest from asset managers in regulated crypto-linked products that allow investors to gain exposure without direct token custody. The filing does not guarantee approval, and no company comment was included in the submission. The SEC’s final determination will determine whether U.S. investors can buy a PEPE-linked ETF through brokerage accounts in the same way they purchase other ETFs.