The SEC has accepted the ETF application of Fat Penguin PENGU: The first Meme coin and NFT hybrid index fund.

The SEC has accepted the application for the Canary PENGU ETF, marking the first time Meme coins and NFTs are included in a traditional ETF structure. (Background: With the soaring price of the fat penguin $PENGU, can Abstract Chain break through among the various L2s?) (Context: The fat penguin Pudgy Penguins has taken over the crypto world: a victory for the elite culture in the crypto world.) The U.S. Securities and Exchange Commission (SEC) officially accepted the Canary Capital's application for the Canary PENGU ETF on August 1. This ETF will package Meme coin PENGU and Pudgy Penguins NFT together in a spot ETF, knocking on the door of mainstream investment. The exchange-traded fund has included Meme coins and NFTs for the first time. The Canary PENGU ETF was applied for on March 20 of this year; according to the application, the ETF primarily holds PENGU tokens, with a weight allocation of about 80%–95%; an additional 5%–15% is allocated to top Pudgy Penguins NFTs. According to the application, the fund manager plans to adjust the NFT holdings based on rarity, visual appeal, and market price rotation, and to ensure liquidity, will simultaneously hold a small amount of Solana and Ether native tokens. By ETF-ifying "on-chain operations," investors can trade high-volatility meme coins mixed with NFT digital assets within familiar securities accounts. The price of PENGU tokens has increased by 132% over the past 30 days, with a market capitalization exceeding $2 billion. Regulatory Challenges The SEC's subsequent review will face three major issues: asset classification, price manipulation prevention, and investor protection. Are NFTs classified as securities, commodities, or an independent asset category? Do Meme coins meet the Howey Test? These undefined areas will affect disclosure obligations and custodial regulations. Furthermore, NFTs cannot be settled using traditional standardized units, presenting unprecedented technical challenges for fund valuation and rebalancing. The global regulatory fragmentation and on-chain anonymity also increase the difficulty of AML (Compliance). The SEC's acceptance is just the beginning; final approval will still require multiple rounds of feedback and revisions. If the Canary PENGU ETF passes the review, it will undoubtedly provide new allocation options for traditional capital and may lead to more "token + NFT" hybrid products. However, it is important to remember that due to Canary Capital's frequent submissions for altcoin ETF applications (including AXL, SUI, LTC, etc.), some in the community believe this may be a marketing tactic, and it is advised to maintain rational thinking when referencing this information. Related Reports The U.S. cryptocurrency ETF gets the regulatory green light: general listing standards may be implemented within 60 days, which projects will become winners? Japan's largest Osaka Exchange plans to launch cryptocurrency derivatives, and JPX is also considering listing crypto ETFs. Rich Dad warns "ETF is just wallpaper eyewash": owning physical gold, silver, and Bitcoin is the true wisdom for wealth in chaotic times. The article "SEC Accepts Application for Pudgy Penguins PENGU ETF: The First Meme Coin and NFT Mixed Index Fund" was first published in BlockTempo, the most influential blockchain news media.