Investment products in cryptocurrencies are becoming riskier. A new exchange-traded fund (ETF) linked to the memecoin PEPE has been submitted by Canary Capital.
The proposed CANARY PEPE ETF, which was filed with the US SEC, will track the token’s price while retaining physical PEPE. It’s interesting to note that the fund might also keep a tiny amount of Ethereum to pay network transaction fees.
The increasing popularity of speciality cryptocurrency ETFs is reflected in this filing. A memecoin ETF represents a step farther into speculative area, although Canary has already investigated products linked to assets like XRP and Solana.
Social media and internet culture helped PEPE gain popularity, but it is still quite unstable.
From its peak in late 2024, the token is still down around 85%. Concerns are heightened by the concentration of ownership, where a small number of wallets control a sizable portion of the supply.
Despite these dangers, some analysts think that diversifying ETF offerings outside popular commodities like Bitcoin and Ethereum may be essential to future cycles in the cryptocurrency market. However, some contend that assets with actual revenue or yield are currently the focus of institutional investors.
Such items’ success is still up in the air. Previous attempts, such as Dogecoin-linked ETFs, failed to live up to promises. However, Canary’s action shows how the ETF race is developing and how far it could go.
Source: X.com
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