Canary Capital’s Underwhelming S-1 Filing for a PEPE Spot ETF
On April 8, Canary Capital submitted an S-1 registration with the SEC, aimed at launching the first US spot exchange-traded fund (ETF) that will directly hold PEPE tokens. PEPE, an ERC-20 meme coin introduced on the Ethereum platform in April 2023, is yet to have a custodian or exchange associated with the fund.
Following the filing, PEPE’s price hovered around US$0.00000359, reflecting a modest increase of 0.6%. Trading volume saw a slight uptick of 10%, reaching US$432 million. This reaction is rather muted for a cryptocurrency that has previously experienced market valuations running into the billions.
Meme Fatigue Setting In?
The proposed ETF will store spot PEPE and distribute shares in units of 10,000, recalculating its net asset value daily at 4:00 PM ET. The fund may allocate up to 5% of its assets in Ethereum solely to cover transaction costs, rather than for investment purposes.
The filing highlights that the value of PEPE is primarily influenced by social media buzz and public sentiment, lacking substantial utility. It also lists the accompanying risks, including volatility, potential market manipulation, custody concerns, and threats of disruption within the Ethereum network, with the possibility of investors facing total loss.
Despite the filing, PEPE’s performance remained tepid; trading data from CoinMarketCap indicated a 10% increase in trading volume just before the announcement, a stark contrast to the extraordinary fluctuations in retail-driven trading seen in previous years.
Limited Interest in Meme Coin ETFs
Canary Capital’s interest in meme coins extends beyond PEPE, with filings for ETFs associated with Mog, PENGU, and TRUMP also submitted. However, investor enthusiasm for meme coin-based ETFs appears lukewarm. For instance, US-listed Dogecoin ETFs have garnered only US$13 million in inflows this year, ranking 17th among cryptocurrency ETFs monitored by CoinShares.
James Butterfill, head of research at CoinShares, noted that interest is heavily skewed towards mainstream cryptocurrencies like Bitcoin and Ethereum, leaving little room for meme assets that fail to provide a compelling investment narrative for institutional investors.
Past attempts to launch meme coin ETFs have similarly witnessed limited success. For example, Grayscale’s Dogecoin Trust ETF debuted in November 2025, and Tuttle Capital has filed for products tied to the BONK meme coin.
As meme coin dynamics continue to unfold, the disinterest in PEPE and other similar assets raises questions about future demand and viability in a market predominantly focused on established cryptocurrencies.
