Asset administration agency Canary Capital is seeking to launch a spot exchange-traded fund (ETF) tied to the PEPE memecoin.
On Wednesday, Canary filed a Kind S-1 for the CANARY PEPE ETF with the US Securities and Trade Fee. The ETF would observe the efficiency of Pepe (PEPE), with all the belief’s PEPE held by a custodian.
It famous that the ETF belief could maintain as much as 5% of the belief’s belongings in Ether (ETH) to pay the transaction charges on the Ethereum community.
Canary Capital, which additionally presents a number of different crypto ETFs monitoring XRP (XRP), Solana (SOL), Hedera (HBAR) and Sei (SEI), has filed for a number of different area of interest crypto ETF merchandise in current months.
In November 2025, Canary Capital filed to launch an ETF monitoring the worth of a memecoin referred to as Mog Coin, the 353rd-largest crypto token by market cap, far behind PEPE, which is ranked forty fifth.
PEPE, a memecoin based mostly on Pepe the Frog, gained traction on social media in 2024. The token is roughly 9% the scale of the biggest memecoin by market cap, Dogecoin (DOGE).
Grayscale’s Dogecoin ETF made its debut in November however fell properly wanting preliminary quantity expectations. ETF analyst Eric Balchunas predicted on the time that the ETFs would get no less than $12 million in quantity. Nonetheless, the ETF solely noticed $1.4 million on its first day.
The proposed ETF additionally comes regardless of the Pepe token, which is down virtually 85% from its December 2024 all-time excessive of $0.00002368, in accordance to CoinMarketCap.
There are at present 513,392 holders of the PEPE, in accordance to Etherscan information. Canary Capital warned traders that possession of the token is very concentrated. “As of January 2026, the ten largest PEPE pockets addresses collectively held roughly 41% of the overall circulating provide,” the submitting stated.
Altcoin season could hinge on extra ETFs launching
Analysts have beforehand stated that the following altcoin cycle could hinge on extra crypto ETFs launching additional down the chance curve.
Nonetheless, Matt Hougan, chief funding officer at funding agency Bitwise, stated in March that conventional altcoin cycles are over, and that institutional traders are targeted on yield-bearing digital devices or crypto belongings that seize income.
Fabian Dori, chief funding officer at Sygnum Financial institution, advised Cointelegraph in December that the variety of new ETF filings is anticipated to surge in 2026, pushed by US crypto rules.
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“On the idea of the potential passing of the Readability Act, we’d anticipate that new filings proceed to transcend BTC and ETH,” Dori stated.
Nonetheless, the US CLARITY Act has not handed as rapidly as trade members had hoped, largely due to an ongoing disagreement over stablecoin yields.
Canary’s submitting warned that rules within the US for using Pepe and the Ethereum community “proceed to evolve,” which can affect using Pepe and its demand.
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