Once known for its adorable NFT penguins, Pudgy Penguins is now making waves on Wall Street. Its native token, PENGU, has surged over 130% in the past month, fueled by social media hype, viral gaming adoption, and a bold new move into traditional finance. In a first-of-its-kind filing, investment firm Canary Capital has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) on March 20, 2025, for an exchange-traded fund (ETF) that combines PENGU tokens and Pudgy Penguin NFTs, a hybrid product never before seen in U.S. markets.
PENGU token price surge | Source: BingX
The ETF filing is now under formal SEC review, signaling growing institutional interest in culturally driven Web3 assets. If approved, it could unlock a new gateway for retail and professional investors alike to gain exposure to one of crypto’s most resilient and recognizable brands.
In this guide, we’ll break down what the PENGU ETF is, when it could launch, how it might impact the token’s price, and how you can trade PENGU today on BingX, powered by AI.
What Is Pudgy Penguins (PENGU) and Why Is It Popular in 2025?
Pudgy Penguins is an NFT-native brand that has successfully evolved into a cross-chain, cross-platform ecosystem. Originally launched in 2021 as a collection of 8,888 Ethereum-based NFTs, the project saw a major turnaround after being acquired in 2022 by entrepreneur Luca Netz.
In 2025, Pudgy Penguins is everywhere, from viral Telegram games to real-world toy shelves. Its Telegram-based game Pengu Clash has onboarded over 1.2 million users since May, while NFTs trade above 16 ETH and the native token PENGU is integrated across Solana, The Open Network (TON), and zkSync. Its retail toys are sold in Walmart, Amazon, and Target, each with QR codes unlocking digital avatars in Pudgy World.
Backed by a loyal community and strong institutional buzz, including Coinbase and VanEck changing their social media profiles to penguins, Pudgy Penguins has emerged as one of the most resilient and recognizable Web3 brands in 2025.
What Is a PENGU ETF and How Does It Work?
A PENGU ETF is a proposed investment fund that would let you gain exposure to Pudgy Penguins’ native token, PENGU, and its NFT collection, without needing to own or manage crypto directly. An ETF, or Exchange-Traded Fund, is a traditional investment product that trades on stock exchanges, similar to shares of companies like Apple or Google.
Instead of holding stocks or bonds, this ETF would hold digital assets. That means if approved, you could invest in the Pudgy Penguins ecosystem using a regular brokerage account, without setting up a crypto wallet or worrying about private keys and blockchain transactions.
How Does the Canary Pengu ETF Work?
Canary Pengu ETF S-1 form | Source: SEC.gov
The Canary PENGU ETF, filed by Canary Capital, is a hybrid fund that blends two types of Web3 assets:
• 80–95% of the ETF’s holdings would be in PENGU tokens, a Solana-based cryptocurrency launched in December 2024.
• 5–15% would be allocated to Pudgy Penguin NFTs, selected based on rarity, price, and desirability. These are part of the original 8,888 Ethereum-based collection that launched in 2021.
• The ETF may also hold small amounts of SOL (Solana) and ETH (Ethereum), but only to cover transaction costs for moving or purchasing NFTs and tokens, not as core investments.
This product is the first-ever ETF proposal to combine a memecoin and NFTs in a single fund. It represents a bold and experimental step for the traditional finance world, which has only recently warmed up to Bitcoin and Ethereum ETFs.
Canary Pengu ETF Timeline: What’s Happening and When Could It Launch?
The road to launching the Canary PENGU ETF is well underway, with several key regulatory milestones already reached in 2025. This proposed ETF, combining the PENGU token and Pudgy Penguin NFTs, has entered formal review by the U.S. Securities and Exchange Commission (SEC), bringing it closer to becoming the first meme coin–NFT hybrid fund in traditional finance.
Here’s how the timeline has unfolded:
• March 20, 2025: Canary Capital submitted a Form S‑1 registration to the SEC. This document outlines the fund's structure, assets, and objectives.
• June 26, 2025: The CBOE BZX Exchange filed a Form 19b‑4, requesting permission to list the ETF on a U.S. stock exchange. This filing initiated the official regulatory review process.
• July 10, 2025: The SEC formally acknowledged the application, which triggered the review timeline mandated by law.
Under SEC rules, the commission has an initial 45-day review window, which can be extended multiple times for further evaluation, up to a maximum of 240 days. This means a final decision could come anytime between late August 2025 and early 2026.
However, there is optimism for an earlier outcome. Pudgy Penguins CEO Luca Netz has publicly stated that the team is aiming for an approval by October 2025, citing active participation in crypto policy discussions in Washington, D.C.
If approved, the PENGU ETF would offer retail and institutional investors a regulated, simplified way to gain exposure to the Pudgy Penguins ecosystem, without having to trade PENGUE tokens or Pudgy Penguin NFTs directly on crypto platforms. This makes it not only a bold financial innovation but also a pivotal moment for how deeply Web3 culture and community-driven assets can be integrated into mainstream investment products.
Impact of Pengu ETF SEC Approval on $PENGU Token Price
ETF approval can have a major influence on a token’s market performance, and PENGU has already seen a strong reaction just from the news of its application being acknowledged.
Market Reaction So Far
Following the SEC’s acknowledgment of the Canary PENGU ETF on July 10, 2025, PENGU surged over 70% in just 30 days. It even recorded a single-day gain of 34% immediately after the news. Daily trading volume skyrocketed, growing over 400% during the ETF hype. On July, it reached a peak of $2.74 billion, al most nearing the token’s circulating market cap of $2.8 billion, a rare metric that shows unusually high turnover for a meme-based asset.
The PENGU token price climbed from around $0.015 in early July to a peak of $0.037 by July 21, marking a 141.2% gain in just 10 days.
These moves mirror what the crypto market saw during the run-up to Bitcoin and Ethereum spot ETF approvals in 2024, signaling how investor psychology can drive rapid price expansion when traditional finance enters the picture.
Pudgy Penguins Price Prediction: Where Could PENGU Go Next?
• Analysts from Presto Research and CoinCentral suggest that if the ETF is approved and market sentiment remains strong, PENGU could test the $0.04–$0.05 level in the short term.
• More optimistic projections see a possible surge toward $0.10 or even $0.30, especially if PENGU becomes the first memecoin-NFT ETF to hit U.S. markets.
• Technical traders have pointed to key resistance near $0.047, a level that, if broken, could trigger a renewed wave of momentum trading.
It’s worth noting that PENGU’s all-time high market cap hit $2.8 billion on July 23, 2025. As of August 2025, its market cap stands around $2.1 billion, suggesting there’s significant room for upside if ETF-driven demand materializes.
Risks and Considerations
While excitement around the PENGU ETF is building, several risks remain. Approval is not guaranteed, especially given the ETF’s novel structure combining a memecoin with illiquid NFTs, an approach the SEC has never approved before. The PENGU token itself currently offers limited on-chain utility, with its value driven largely by community sentiment rather than functional use cases.
Additionally, the inclusion of NFTs poses valuation and liquidity challenges that may deter institutional investors. Until regulatory clarity is achieved, PENGU’s price is likely to remain highly speculative and sensitive to news-driven volatility.
How to Trade PENGU on BingX Spot Market
PENGU/USDT spot trading pair, powered by BingX AI analysis
While ETF timing remains uncertain, you can buy and trade PENGU tokens today on BingX, using smart insights powered by BingX AI to guide your strategy:
1. Sign up & verify: Create a BingX account and complete identity verification (KYC) for full trading access.
2. Deposit funds: Add USDT or other supported crypto to your Spot Wallet, via card, P2P, or crypto deposit.
3. Find PENGU trading pair: Search for “PENGU/USDT” in the Spot trading interface. Use BingX AI to analyze market trends and get real-time trading signals.
4. Place an order: Choose a Market or Limit order, set your desired amount, and click Buy.
5. Monitor & manage: Track your holdings in the Spot Wallet. With BingX AI, set automated stop-loss and take-profit levels to manage risk and maximize potential gains.
Closing Thoughts
Canary Capital’s PENGU ETF proposal represents a novel step toward merging internet culture with traditional finance. If approved, it could bring mainstream visibility to memecoins and NFT-backed assets like PENGU. However, approval is not guaranteed, and even if granted, the token may remain highly volatile due to speculative interest and limited utility. For those looking to participate sooner, platforms like BingX offer a practical way to trade PENGU directly, supported by AI-powered tools for strategy and risk management.
As with all crypto investments, it’s important to do your own research, assess your risk tolerance, and be cautious during periods of rapid price movement. Stay updated on SEC decisions, and follow BingX Academy for the latest insights and educational resources.
