Cboe Seeks to Trade Shares of the Wacky Canary PENGU ETF
Published Date: 7/14/2025
Notice
Summary
The Cboe BZX Exchange wants to start trading shares of the new Canary PENGU ETF, a fund based on commodities, making it easier for investors to buy and sell these shares on the exchange. This change affects investors looking for fresh ways to invest in commodity-based assets and could start soon after the SEC reviews comments. It’s a cool new option that might shake up the market with fresh trading opportunities and no fixed end date for the fund.
Analyzed Economic Effects
7 provisions identified: 4 benefits, 2 costs, 1 mixed.
Canary PENGU ETF Will Be Listed on Cboe BZX
You will be able to buy and sell shares of the Canary PENGU ETF on the Cboe BZX Exchange once the Trust's Form S-1 registration statement is effective. The Shares must have a minimum of 100,000 Shares outstanding at the start of listing and will trade as equity securities during all BZX trading sessions.
Fund Asset Mix: PENGU and Pudgy Penguin NFTs
The Trust is expected to hold approximately 80–95% of its assets in PENGU and 5–15% in Pudgy Penguin NFTs, and under normal circumstances at least 95% of the Trust's assets will be invested in PENGU and Pudgy Penguin NFTs. The Trust may hold SOL or ETH as needed to pay blockchain network transaction fees or to purchase NFTs.
Daily NAV and 15-Second Intraday Indicative Value
The Trust's NAV will be calculated daily as of 4:00 p.m. ET and disseminated to all market participants, and an Intraday Indicative Value (IIV) per Share will be updated every 15 seconds during regular trading hours. Price and holdings information will be published on the Sponsor's website and via major market data vendors.
Cold-Storage Custody and No Asset Lending
A third-party Custodian will hold the Trust's Portfolio Digital Assets in segregated cold storage addresses, safeguard the private keys, and will not loan, hypothecate, pledge, or otherwise encumber the Trust's Portfolio Digital Assets without the Trust's instruction. Custody records will identify the assets as property of the Trust.
Cash-Only Creation/Redemption in 10,000-Share Baskets
Authorized participants must create and redeem Shares in cash-only transactions in increments of 10,000 Shares (a Creation Basket), with creation orders based on the Trust's NAV determined as of 4:00 p.m. ET on the order date. Authorized participants will not deliver or receive the Portfolio Digital Assets as part of the creation/redemption process.
No Staking; Forks/Airdrops Excluded from NAV
The Trust, Sponsor, Custodian, and related parties will not engage in proof-of-stake validation or use assets to earn additional Portfolio Digital Assets, and the Trust will disclaim and not include incidental rights (e.g., forks or airdrops) in determining the Trust's NAV.
Trading Halts Tied to IIV and NAV Dissemination
The Exchange may halt trading in the Shares under BZX Rule 11.18 for market conditions and will halt trading if the IIV is not being disseminated during the day or if the NAV is not available to all market participants; prolonged IIV interruption will lead to a halt no later than the next trading day. Trading may also be halted for other unusual conditions.
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