Solana Futures ETF Set to Boost Institutional Adoption Despite Modest Inflows

Quick Summary

Asset manager Canary Capital has filed to launch a U.S. exchange-traded fund (ETF) holding Pengu (PENGU), the governance token of the Pudgy Penguins NFT project. If approved, this would be the first U.S. ETF to hold NFTs directly. The filing comes amid a wave of new crypto ETF proposals following a shift in U.S. regulatory stance under President Trump.

Key Points

• Canary Capital’s ETF would hold spot PENGU tokens and Pudgy Penguins NFTs.
• The ETF would also hold other digital assets like SOL and ETH for operational purposes.
• PENGU currently has a market capitalization of approximately $438 million.
• This filing follows Canary’s recent proposal for the first U.S. ETF holding Sui (SUI).
• Industry analysts remain skeptical about the potential success of niche crypto ETFs.

First U.S. ETF to Hold NFTs

Canary Capital’s proposed ETF would mark a significant milestone as the first U.S.-listed ETF to directly hold NFTs. The Pudgy Penguins NFT collection is among the most popular NFT brands, and the ETF aims to provide traditional investors exposure to this emerging asset class.

Changing Regulatory Environment

Since President Trump began his second term, the U.S. Securities and Exchange Commission (SEC) has acknowledged numerous filings for crypto-related investment products. This marks a significant policy reversal from the previous administration, which saw extensive regulatory enforcement actions against crypto firms.

Recent filings include ETFs for various cryptocurrencies such as Solana (SOL), XRP, Dogecoin (DOGE), and even memecoins like Official Trump (TRUMP).

Market Skepticism

Despite the regulatory openness, some analysts doubt the viability of ETFs focused on niche cryptocurrencies and NFTs. Crypto researcher Alex Krüger noted that the announcement of the Pengu ETF had minimal impact on token prices, suggesting limited investor enthusiasm.

Solana Futures ETFs Launched

Separately, asset manager Volatility Shares recently launched two Solana futures ETFs:

• Volatility Shares Solana ETF (SOLZ)
• Volatility Shares 2X Solana ETF (SOLT)

These ETFs use derivatives to track Solana’s performance with leverage, while spot SOL ETFs remain pending regulatory approval.