Solana ETF and Pudgy Penguins Fund Enter SEC Review as Altcoin Investment Push Accelerates

Solana ETF and Pudgy Penguins NFT Fund Take Centre Stage in SEC Crypto Filings

The crypto ETF landscape is heating up as U.S. regulators receive new filings that could reshape digital asset investment.

Among the latest are proposals for an exchange-traded fund (ETF) tracking Solana (SOL), the blockchain platform’s native token, and a novel ETF combining memecoin tokens with NFTs linked to the Pudgy Penguins collection.

Why Is the Solana ETF Gaining Momentum Now

The Invesco Galaxy Solana ETF has joined a growing list of altcoin funds seeking SEC approval.

Solana ranks as the sixth-largest cryptocurrency by market value, and this new fund would provide investors with a regulated way to gain exposure to SOL.

The ETF is set to trade under the ticker QSOL, with Galaxy Digital Funds handling execution and Coinbase as the custodian.

Interest in altcoin ETFs has surged after the notable success of Bitcoin and Ethereum spot ETFs, which have attracted $47 billion and $4 billion in investments respectively.

This momentum has pushed regulators to consider over two dozen altcoin ETF applications covering XRP, Dogecoin, Cardano, Polkadot, Hedera, and more.

Recent filings have also clarified that Solana ETFs may include staking — the process of locking tokens in a network to earn rewards.

While this has sparked regulatory debate due to potential risks, industry insiders expect Solana, XRP, and Litecoin spot ETFs to have a strong chance of SEC approval by the end of 2025, with Bloomberg analysts placing odds around 95%.

Canary PENGU ETF Brings NFTs Into the Mainstream

In a notable departure from traditional ETFs, the Cboe BZX exchange submitted a Form 19b-4 to list the Canary PENGU ETF, which blends memecoin tokens and NFTs from the Pudgy Penguins project.

This fund would hold between 80 to 95 percent of its assets in PENGU tokens and 5 to 15 percent in NFTs, with some minor holdings of ETH and SOL to support transactions.

This ETF aims to offer retail investors indirect access to both meme-style crypto tokens and digital collectibles within a regulated framework.

Canary Capital, which actively manages the portfolio, will select NFTs based on rarity, market price, and visual appeal, maintaining flexibility to adjust holdings in response to market changes.

The PENGU token, native to Solana and tied to the Pudgy Penguins community, lacks a specific utility beyond its cultural association but has gained significant attention.

If approved, the Canary PENGU ETF would be the second memecoin ETF on the market, following the Dogecoin fund, and the first to incorporate NFTs directly into its structure.

According to Bloomberg ETF analyst Eric Balchunas, the SEC has officially begun its review of the Canary PENGU ETF.

He pointed out that the regulatory deadline for a decision is 1 March 2026, though there is a chance that approval could come sooner.

He also noted the SEC’s ongoing efforts to set clearer standards for digital asset ETFs.

What Are the Risks and Potential Rewards

The speculative nature of memecoins and NFTs means the PENGU ETF carries a high-risk profile.

Investors will not receive direct benefits from holding the underlying tokens or NFTs, as the fund operates through a commodity trust structure.

The SEC’s scrutiny reflects concerns about market volatility and investor protection in this emerging space.

Meanwhile, Solana’s price has dropped nearly 18% in the past month, currently trading around $143, mirroring a broader altcoin downturn.

PENGU tokens have fallen 22% over the same period but remain actively traded, with a market valuation near $745 million and robust liquidity.

Could These ETFs Shape the Future of Crypto Investment

The filings for Solana and Pudgy Penguins ETFs reveal a growing confidence among fund managers and regulators to bring alternative crypto assets under traditional financial umbrellas.

By combining tokens and NFTs in a regulated product, Canary Capital is pushing the boundaries of what an ETF can include.

As digital assets diversify beyond Bitcoin and Ethereum, these new ETFs may serve as a bridge for mainstream investors wary of direct crypto ownership and custody risks.

Their approval could signal a wider acceptance of non-fungible tokens and meme coins within regulated markets, offering fresh routes for portfolio diversification.

What If NFTs and Memecoins Become Standard Assets

The inclusion of NFTs alongside tokens in an ETF challenges conventional investment categories and invites questions about valuation, liquidity, and regulation.

If funds like Canary’s PENGU gain approval and traction, the line between digital culture and finance could blur further, potentially reshaping asset management.

This raises a provocative question: could collectibles and meme tokens become as commonplace in portfolios as stocks and bonds?

The answer may redefine how we think about value and ownership in the digital age.