The U.S. Securities and Exchange Commission (SEC) is now reviewing a fresh ETF proposal that focuses on PENGU, a Solana-based meme coin. This development arrives as Shiba Inu (SHIB), one of the largest and most popular meme coins, remains sidelined in the ETF race.
Cboe BZX Exchange has submitted a 19b-4 form to the SEC seeking permission to list and trade shares of the Canary PENGU ETF, a spot-based exchange-traded fund. This application follows the S-1 filing from Canary, the ETF’s sponsor, which was submitted three months ago. Bloomberg ETF analyst Eric Balchunas confirmed the update in a recent post on X.
What the Canary PENGU ETF Offers
The proposed ETF intends to provide investors with indirect exposure to the PENGU token and Pudgy Penguins NFTs. Additionally, the ETF will include exposure to digital assets, such as Solana and Ethereum, to maintain liquidity and facilitate trades of its primary holdings.
Structured as a commodity-based fund, the Canary PENGU ETF appoints CSC Delaware Trust as the trustee. The product aims to replicate the growing success of meme coins and NFTs by bundling them into a regulated investment vehicle.
The submission of the 19b-4 filing marks the beginning of the formal review process. The SEC is expected to acknowledge the filing within two weeks, after which it will face four potential decision deadlines to approve or deny the ETF.
Shiba Inu Still Excluded Despite Public Support
While other meme coins are gaining institutional recognition, Shiba Inu remains excluded. Asset managers have submitted ETF proposals for Dogecoin (DOGE), Pudgy Penguins (PUDGY), Official Trump (TRUMP), Bonk (BONK), and Official Melania Meme (MELANIA), yet SHIB has not made the list.
This persistent exclusion comes despite strong community support for an SHIB ETF. A Change.org petition launched by SHIB holders, urging Grayscale to introduce a Shiba Inu ETF, has collected over 11,700 signatures. The campaign highlights the growing demand among retail investors for a regulated Shiba Inu investment vehicle.
Earlier this year, Lucie, the marketing lead for Shiba Inu, emphasised the case for SHIB in an X post. She pointed to SHIB’s high accessibility, decentralised nature, and strong community-driven growth as valid reasons for ETF consideration.
Related article: SHIB Burn Rate Soars Over 5,400% as Shibarium Network Booms
SHIB Maintains Popularity Despite ETF Snub
Even without ETF approval, Shiba Inu remains a significant force in the meme coin sector. It currently holds the position of the second-largest meme coin by market capitalisation, only behind Dogecoin, and ranks 19th overall in the global crypto market. SHIB’s total market cap stands at $6.88 billion, underlining its continued relevance.
Still, the absence of institutional products like ETFs raises questions about how SHIB compares to its rising meme coin competitors in terms of investor appeal.
Final Thoughts
The SEC’s consideration of the PENGU ETF represents another step forward for meme coins in traditional finance, but once again, Shiba Inu is left on the sidelines. As other meme tokens gain regulatory traction, SHIB’s supporters remain hopeful that its day in the ETF spotlight will eventually arrive. Until then, the community continues to rally for recognition while SHIB’s market presence holds strong.
