Hours after Canary Capital filed for a PENGU ETF on March 20, the token’s price dropped by 10% to $0.0062, with critics pointing to weak retail demand.
By Bhushan Akolkar
Updated
2 mins read
Hours after asset manager Canary Capital filed for a Pengu ETF on Thursday, the PENGU price came crashing down 10%, all the way to $0.0062 levels, from the highs of $0.0075. This pump and dump for PENGU happened as several players shared a bearish take on the ETF news.
PENGU’s trading activity spiked after the ETF filing, with daily volumes climbing 45% to more than $135 million amid major price volatility.
On Thursday, March 20, Canary Capital submitted its filing for an exchange-traded fund (ETF) that tracks the price of PudgyPenguin’s native crypto token PENGU, along with the non-fungible tokens running on the Pudgy Penguins blockchain platform. This is the first crypto ETF filing that also has an NFT exposure.
The filing specifies that the trust will hold spot PENGU alongside Pudgy Penguins NFTs, with other digital assets like Solana (SOL) and Ethereum (ETH) included “as necessary or incidental” for transactions related to the fund’s primary holdings.
This approach aims to optimize operational processes for Canary, enabling efficient purchase, sale, and transfer of assets within the trust.
Pudgy Penguins is known to have hosted one of the most popular NFT collections in the market. However, it seems that the market hasn’t quite absorbed the news positively as the PENGU price has come under strong selling pressure.
The launch of the PENGU ETF sparked a reaction in PENGU’s price, though it was notably smaller in scale compared to other ETF events. Analysts attribute this subdued response to the novelty and perceived higher risks associated with NFTs and meme coins like PENGU.
Critics argue that there is little to no genuine retail demand for PENGU or Pudgy Penguins NFTs, raising questions about the ETF’s utility and market relevance. This has resulted in further selling pressure on PENGU price.
This is not the first time that a meme coin ETF filing is happening. Previously, top asset managers like Grayscale and Bitwise have filed for a Dogecoin ETF.
Since its launch, PENGU has been listed on platforms like Robinhood. However, its price has struggled to maintain momentum, currently down over 90% from its all-time high in December.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.