Canary Capital filed an S-1 application with the U.S. Securities and Exchange Commission on April 8 to launch a spot exchange-traded fund tracking the memecoin PEPE.
"The trust would hold spot PEPE and may hold up to 5% of assets in ETH to cover network transaction fees," the filing states, outlining a structure where shares are issued in 10,000-share baskets.
The prospectus warns that PEPE is a highly speculative asset whose value is driven by online sentiment rather than utility. It highlights significant risks, including market manipulation, noting that as of January 2026, the ten largest PEPE wallets controlled approximately 41% of the token's circulating supply, according to the filing. Etherscan data shows the token currently has 513,392 holders.
The filing tests the SEC's appetite for products beyond Bitcoin and Ethereum, following Grayscale’s Dogecoin Trust ETF (GDOG) which went live in November 2025. Approval could legitimize memecoins as an asset class, but faces regulatory headwinds due to the asset's volatility. The PEPE token is down nearly 85% from its December 2024 all-time high, per CoinMarketCap data.
Canary Capital's move adds to a growing pipeline of niche crypto funds, including filings for ETFs tracking MOG, PENGU, and BONK. The firm's proposal for a PEPE ETF, an ERC-20 token on Ethereum, shows issuers are keen to expand ETF wrappers further down the crypto risk curve after the success of spot Bitcoin products.
This article is for informational purposes only and does not constitute investment advice.
