Canary Capital, an American investment firm, has taken a bold step by registering an authorization request to issue an ETF based on Pengu (Pengu), the governance token of the non -fungible tokens project (NFT) P
This company’s movement before the United States Stock Exchange and Securities Commission (SEC), arrives at a time when ETFs in cryptocurrencies win land in the United States, But also ask questions about the address that this market is taking.
While Bitcoin (BTC) and Ethher (ETH) ETFs, Ethereum cryptocurrency, have marked milestones in the integration of traditional finances with digital assets, proposals such as Pengu generates doubts about their real utility and the impact they could have on the credibility of these financial instruments.
The ETF al few work by buying and maintaining cryptocurrencies (or the underlying asset) to support their actions, which makes them a key factor in the price dynamics of these assets.
This mechanism directly influences the price of the asset: The demand promotes the upward value, while the withdrawals press it down.
Bitcoin’s success and Ethereum’s stumbling block
The launch of the Bitcoin ETFs in cash in 2024 became a historical milestone. These funds registered The most successful debut of any ETF in American historycurrently accumulating 36,000 million dollars in assets under management (AUM).
This capital flow contributed to BTC reaching new record prices, consolidating it as an attractive asset for investors of all levels.
On the other hand, the ETF of Ether, launched in mid -2024, did not run with the same fate. After their debut, they faced periods of capital exits, as seen in the following graph.
This negatively affected the price of ETH, demonstrating that The success of an ETF is not guaranteed, even when it is based on a consolidated cryptocurrency.
This contrast between BTC and ETH highlights a key point. ETFs can be an effective bridge between digital currency and traditional finances, But its impact depends on the demand and perception of the underlying asset.
For investment advisors and institutional investors, these instruments offer a regulated and accessible way to expose themselves to cryptocurrencies.
However, the arrival of proposals such as the one based on the token Pengu introduces an element of uncertainty that could alter this dynamic.
A wave of applications in a favorable political context
The panorama for cryptocurrency ETF has changed since the second arrival of Donald Trump to power in 2025.
Trump has expressed a pro-bitcoin position and has driven flexible regulations for the sector, be carried out, What has encouraged more issuing to submit applications to the SEC.
As Cryptonoticia reported, since last January, more than 30 ETF proposals have been registered, including funds for Litecoin (LTC), Solana (Sun) and XRP of Ripple. This wave reflects the growing interest in diversifying the options available for investors.
However, not all proposals seem to have the same weight. Together with cryptoactive with established cases, applications have emerged for assets such as Official Trump (Trump), a memecoin inspired by the president and last week of Pengu.
These initiatives, although innovative, lack the strength that characterizes projects such as Bitcoin or Ether, which leads to question its purpose and viability in the market.
What problem solves the Token Pengu?
Pengu is the Governance Token of P
In December 2024, Pengu debuted with a rise of more than 500%, reaching a market capitalization exceeding 2,000 million dollarsat the time.
But the numbers tell another story. In three months, Pengu’s price fell 85%, from $ 0.046 to $ 0.0069. While market capitalization of the collection fell to 438 million dollars. This decline reflects the fragility of these projects.
Canary Capital proposes that its ETFs invest between “80% and 95% of its assets in PENGU and between 5% and 15% in NFT of Pudgy Penguins, with the daily value of the fund based on PENGU prices according to Coindesk Indices”.
The application also mentions that the Fund will include other digital assets, such as Sol and ETH, necessary for Operations related to Pengu and NFT.
If approved, this would be the first American ETF to maintain NFT, a concept that sounds intriguing but that does not finish answering a fundamental question: what value does Pengu provide beyond speculation? What problem solves a token linked to images of digital penguins? The answer seems to be: none.
Unlike Bitcoin, which has characteristics that make it a good long -term value reserve. Among them, its shortage stands out mainly, with a circulating that can never exceed 21 million BTC.
For its part, Ethereum supports intelligent contracts and decentralized applications, Pengu seems to depend exclusively on the speculative value of a NFT collectionwhose relevance has decreased over time, as their numbers indicate it.
The risk of diluting the credibility of ETFs
This trend worries about its implications. The Cryptactive ETFs such as Bitcoin or Ether seek to legitimize the sector and attract serious investors.
Instead, projects such as Trump or Pengu lack foundations. Its boom depends on fashions, not useful. If these ETFs reach the market, they could dilute the credibility of cryptocurrency ETFs.
Let’s imagine the stage. An institutional investor evaluates to enter the cryptocurrency market through ETF. See options like BTC, but also run into Pengu or Trump.
The presence of these projects can generate doubts about the seriousness of the sector. Why risk capital in a market that mixes solid assets with speculative experiments? The perception of risk increases, and with it, the possibility that ETF loses relevance.
In addition, most of these funds face a practical challenge. Attracting assets under management (AUM) requires sustained confidence and demand. The Bitcoin ETF achieved it for their unique position. But less known or concrete utility cryptocurrencies will hardly repeat that success.
In the case of Pengu, its price drop and the lack of a clear purpose beyond speculation suggest that the Canary Capital Fund It could become a financial ballast for its issuing, generating more costs than benefits.
Canary Capital has been active in the issuance of Cryptocurrency ETF proposals, previously submitted ETF requests based on Solana, Litecoin, XRP and other minor projects such as Hedera (HBAR) and Axlar (AXL) and SUI (SUI), raising seven the total ETF applications for cryptocurrencies submitted by the company.
An uncertain future for cryptocurrency ETFs
The possible entry of new ETF opens the door for more people to access cryptocurrencies through regulated channels.
For investors, This represents an opportunity to diversify its portfolios and take advantage of the growth of decentralized finances.
However, the success of these instruments depends on the quality of the assets they invest. Cryptocurrencies such as Litecoin or Solana have foundations that justify their existence, But projects such as Pengu or Memecoins lack a solid base that inspires long -term confidence.
Ultimately, The cryptocurrency ETF market runs the risk of saturating with irrelevant proposals that do not solve real problems or offer tangible value.
This could affect the perception of ETF of serious digital currencies, such as BTC or ETH, which do have clear use cases and an increasing adoption. If emitters continue to bet on speculative projects, the result could be a loss of credibility that harms both the financial instruments and the prices of the underlying cryptoactives.
For now, the digital penguin experiment seems more a whim than a solution, and its impact on the market will be a fire test for the future of cryptocurrency ETFs.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author’s opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.