Asset manager Canary Capital has filed a registration statement with the U.S. Securities and Exchange Commission seeking approval to launch an exchange-traded fund linked to the memecoin Pepe (PEPE), marking another step in the expansion of crypto-based investment products in traditional markets.
According to the S-1 filing, the proposed Canary PEPE ETF would hold PEPE tokens directly and issue shares that track the digital asset’s market price.
The fund aims to provide investors with exposure to the memecoin through traditional brokerage accounts without requiring them to purchase or store the cryptocurrency themselves.
If approved, the ETF would operate similarly to other spot crypto funds, holding the underlying asset in custody while issuing shares representing fractional ownership of the fund’s holdings.
The value of the ETF shares would be based on the price of PEPE derived from selected cryptocurrency trading platforms.
Exchange-traded funds have become an increasingly popular vehicle for accessing digital assets in regulated financial markets.
Following the approval of spot Bitcoin ETFs in the United States in 2024, several asset managers have explored expanding ETF offerings to include other cryptocurrencies.
The proposed PEPE ETF would represent one of the first attempts to bring a memecoin-focused fund to U.S. public markets.
Memecoins, which often originate from internet culture and social media trends, have attracted significant investor interest despite their highly volatile price movements.
The filing outlines several risk factors associated with the product, emphasizing the speculative nature of memecoins and the possibility of extreme price fluctuations. The prospectus warns that the value of PEPE could experience rapid changes and that investors may lose their entire investment.
Canary Capital stated that the ETF is intended to simplify access to the digital asset while providing institutional-grade custody and operational infrastructure.
However, the SEC has not yet approved the offering, and the filing represents only the initial step in the regulatory review process. The agency will evaluate the proposal before determining whether the fund can proceed to listing on a U.S. exchange.
If eventually approved, the Canary PEPE ETF could signal growing institutional interest in broader segments of the cryptocurrency market beyond established assets such as Bitcoin and Ethereum.
