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Another MEME coin “breaks out”—Canary submits a spot PEPE ETF application

On April 9, asset management firm Canary Capital filed an S-1 registration statement for the Canary PEPE ETF with the U.S. Securities and Exchange Commission (SEC), planning to launch a spot exchange-traded fund (ETF) that tracks the price performance of the meme coin PEPE. After the news broke, PEPE’s price remained “unmoved”—so is this market “aesthetic fatigue,” or is it building momentum? What impact might it have on other MEME coins as well? Let’s talk about it together.

PEPE’s market performance provides real-world support for this application. Although the current price is down 85% from its historical high in December 2024, it still recorded a 6.06% increase over the past 30 days, showing that the coin still has some resilience amid market fluctuations. Canary Capital is not new to the crypto ETF space; it has previously launched similar products tracking coins such as XRP, Solana, and Hedera. This move into PEPE is undoubtedly a bet on the long-term value of the meme coin track.

1. “Value reappraisal” for the meme coin track
For a long time, because meme coins lack practical use cases, they have been viewed as “speculative toys” in the crypto market and have struggled to gain recognition from traditional capital. Canary Capital’s ETF application is, in effect, putting a “compliance label” on PEPE—and on the entire meme coin track—potentially attracting institutional funds with lower risk appetite to enter the market.

2. The “catfish effect” in crypto market structure
The current crypto ETF market is still dominated by mainstream coins such as Bitcoin and Ethereum. The emergence of meme coin ETFs will break the existing pattern and broaden investors’ allocation choices. Canary Capital’s move could trigger a chain reaction, prompting other asset management firms to speed up their plans for ETFs tracking niche coins, driving the crypto market to evolve from “concentration at the top” to “a hundred flowers blooming.”

3. “Fresh source of vitality” for the PEPE token

The ETF subscription and redemption mechanism will enhance PEPE’s liquidity. Traditional investors don’t need to directly interact with crypto exchanges; they can participate in PEPE investments through stock accounts, which will significantly lower the entry barrier and attract incremental capital. It is estimated that if the PEPE ETF is approved, inflows in the first year could exceed $1 billion, becoming an important liquidity pillar for the meme coin track.

4. “The touchstone” for regulatory attitudes

The SEC’s approval outcome for the PEPE ETF will become an important window to observe the direction of U.S. crypto regulatory policy. Previously, the SEC has held a cautious stance toward crypto ETFs and has repeatedly delayed approval decisions for Canary Capital’s SUI ETF. If this meme coin ETF application can be approved, it will send a signal from regulators of openness toward niche crypto assets; if it is rejected, it could raise concerns in the market about crypto regulation tightening.

5. The market may be waiting for the “regulatory hammer”

In summary, Canary Capital’s application for a PEPE ETF could bring several hundred million dollars in inflows from traditional financial markets to MEME tokens. The fact that the price hasn’t risen yet may be the market quietly waiting for the approval outcome. Interested investors may consider taking a measured position in some PEPE spot holdings and long positions, while also setting stop-loss orders to guard against the application being denied.

6. Risk warning:

First is regulatory risk—if the SEC ultimately rejects the application or rolls out stricter crypto regulatory policies, PEPE’s price may see a significant pullback. In addition, there are doubts in the market about Canary Capital’s motives. The company previously submitted frequent applications for multiple altcoin ETFs and was criticized by outsiders as “using ETF concepts to hype coin prices.” If the PEPE ETF ultimately fails to be approved, it could trigger a trust crisis among investors toward Canary Capital, which may then affect the market performance of its other crypto ETF products.