PENGU, the utility token of Pudgy Penguins NFT, plunged over 2.5% during Wednesday’s U.S. market hours to trade at $0.0096. Despite the price decline, the project remains in the spotlight, following the 19-4 filing of the Canary PENGU ETF with the U.S. Securities and Exchange Commission (SEC) via Cboe. This ETF marks a significant step towards integrating NFT-based digital assets into the regulated financial product.
Canary Files First-Ever NFT-Linked Spot ETF Featuring Pudgy Penguins
On Wednesday, June 25th, the Canary Capital officially filed the Form 19-b4 with the U.S. Securities and Exchange Commission (SEC) via Cboe BZX Markets, proposing the Canary Penguin ETF.
The filing outlines a proposed rule to list and trade shares of the fund, which the company plans to structure as a commodity-based trust under BZX Rule 14.11(e)(4). For the fund distribution, the ETF aims to allocate between 80-95% of its assets to PENGU and 5-15% of its total assets to Pudgy Penguin NFTs. As the memecoins run on the Solana and Ethereum networks, trust is required to hold some amount of SOL and ETH coins to cover transaction fees and NFT purchases.
This fund builds on Canary’s earlier S-1 filing and becomes the second meme coin ETF to reach the SEC’s desk after Dogecoin.
If approved, the ETF would provide retail and institutional investors with regulated exposure to the Solana-based PENGU memecoin without requiring them to hold actual cryptocurrency.
Pennant Pattern Sets for a 70% Breakout Rally
Over the past six weeks, the PENGU coin price shows a notable correction from $0.017 to $0.0096 current trading value, registering a 43% loss. Interestingly, this correction trend resonated strictly within two converging trendlines, indicating the formation of a bullish pennant pattern.
The chart setup typically displays a long ascending pole representing the dominating trend in the market, followed by such correction to recuperate exhausted bullish momentum.
By press time, the memecoin is just 5% away from challenging the upper boundary of the bullish pattern. The potential breakout also reclaims the fast-moving 20-and-50-day exponential moving averages to signal a bullish shift in market sentiment.
The post-breakout rally could push the Pudgy Penguins coin over 70% to test the swing high resistance of $0.0176.
On the contrary, the correction trend could prolong if sellers continue to actively defend the overhead resistance of the pennant pattern.
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