Canary Capital applies for a PEPE ETF, memecoin spot trading faces SEC scrutiny

Canary Capital, a cryptocurrency asset management firm, filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on April 8, seeking approval to list an exchange-traded fund (ETF) that tracks the spot price of the popular meme coin PEPE. This is the latest move by crypto ETF issuers to test the boundaries of regulatory tolerance, following the successful approval of spot Bitcoin and spot Ethereum ETFs.

Application Background: How far can an SEC-friendly crypto stance go?

After spot Bitcoin ETFs and spot Ethereum ETFs were approved by the U.S. SEC in succession, the market’s expectations for the regulator’s new posture have risen. Canary Capital’s PEPE ETF filing is the latest step in this wave of probing—issuers are systematically testing how far the SEC’s approval boundary for various digital assets extends under the new regulatory environment.

Notably, on the same day, Morgan Stanley’s spot Bitcoin ETF (MSBT) was also officially listed on the NYSE Arca market, showing that the institutionalization of the crypto ETF market is being advanced in parallel along multiple tracks.

In its S-1 filing, Canary Capital explicitly states that PEPE is a meme coin—“with no practical use”—but its market value and brand recognition make it one of the leading candidates for a meme coin ETF.

PEPE Key Data: 420 Trillion Tokens and a $1.5 Billion Market Cap

PEPE Key Fundamental Data (as of the time the application was submitted)

Launch date: April 2023

Total token supply: more than 420 trillion tokens

Market cap: about $1.5 billion (The Block Price Page data)

Trading price: about $0.0000036

Practical use: a meme coin that Canary Capital explicitly states in the filing has “no practical use”

ETF application type: spot ETF, tracking the spot price of PEPE tokens

Canary Capital’s Meme Coin ETF Footprint

The PEPE ETF is not Canary Capital’s first attempt in the meme coin space. Previously, the company had already filed an ETF application with the SEC to track the price of MOG (a meme coin with relatively lower recognition), as well as a listing application for the first Pengu ETF.

This series of actions shows a clear strategic thread: Canary Capital is positioning meme coin ETFs as a differentiating strategy, systematically building exposure to crypto asset categories that mainstream, large asset management institutions have not yet entered. If the PEPE ETF is ultimately approved, it would be the first compliant fund product globally to track the spot price of a well-known meme coin, carrying significant market demonstration value.

Frequently Asked Questions

Does Canary Capital’s PEPE ETF application mean the SEC may approve a meme coin ETF?

Submitting the application does not represent the SEC’s intention to approve; it only means the issuer has officially entered the regulatory review process. After spot Bitcoin and spot Ethereum ETFs were approved one after another, the market is full of expectations for the SEC’s regulatory boundary, but the lack of practical-use characteristics in meme coins may become the core point of contention in the review.

What is PEPE, and why was it chosen as the underlying asset to track for a spot ETF?

PEPE is a meme coin launched in April 2023. Its total token supply is more than 420 trillion tokens, and its market cap is about $1.5 billion. It has a high level of recognition and a broad base of retail holders within the crypto community. In its filing, Canary Capital clearly explains that PEPE has no practical use; it is a purely meme coin, and its investment logic is built on market sentiment and brand effects.

Has Canary Capital ever successfully received SEC approval for other crypto ETFs?

Canary Capital previously submitted listing applications for the MOG meme coin ETF and the Pengu ETF. As of the time this report was published, the above applications are still in the regulatory review stage, and there is no precedent of the SEC approving any meme coin spot ETFs.