Canary Capital files for U.S. spot PEPE ETF

Canary Capital submitted a registration statement with the U.S. Securities and Exchange Commission seeking approval to list a spot PEPE exchange-traded fund that would hold PEPE tokens rather than derivatives or futures contracts.

The filing describes a fund that would buy and store underlying PEPE tokens on behalf of shareholders and list shares on a national securities exchange. The document says the vehicle is intended to let investors gain exposure to PEPE price movements without managing private keys or using cryptocurrency trading platforms.

Under the proposal, the fund would acquire PEPE in the open market, place tokens in qualified custody, and issue shares that represent a proportionate claim on the fund’s holdings. Authorized participants would create and redeem shares through in-kind transactions, a mechanism commonly used to keep ETF share prices aligned with the value of the assets the fund holds.

The application begins the SEC’s review process, which includes a public comment period and potential staff feedback before the commission decides whether to approve the listing. The filing does not guarantee approval; the SEC will assess the fund’s operational plans, custody arrangements and market surveillance agreements.

The document highlights risks tied to holding a memecoin, noting that PEPE emerged in 2023, trades mainly on cryptocurrency exchanges and decentralized platforms, and can exhibit large, rapid price swings. The filing warns investors they would remain exposed to price volatility, limited liquidity and custody-related risks associated with digital assets.

If the SEC requests changes or additional disclosures, Canary Capital may revise its registration statement. The review timeline can vary: some ETF applications are cleared within months while others take longer depending on regulator questions and the existence of surveillance agreements with trading venues.

A spot PEPE ETF would join other crypto-linked investment products that translate token market activity into regulated, exchange-traded instruments for U.S. brokerage accounts. The filing reflects Canary Capital’s intent to offer regulated access to PEPE while leaving final approval and any required modifications to the SEC’s review process.