Investment firm Canary Capital has filed with regulators for a spot Pepe (PEPE) exchange-traded fund. If approved, it would be only the second memecoin ETF after Dogecoin. The filing has generated significant skepticism from analysts and mixed reactions from the crypto community, with some openly opposing the move. Data shows existing spot Dogecoin ETFs have seen minimal investor demand, raising questions about Wall Street’s appetite for such products.
Investment firm Canary Capital has filed for a spot Pepe (PEPE) ETF, setting the stage for the second memecoin product of its kind. This follows the approval of spot Dogecoin ETFs last November, which currently include products from Grayscale, 21Shares, and Bitwise.
Senior Bloomberg ETF analyst Eric Balchunas questioned the rationale, asking on social media, “What is the investment thesis for $PEPE?” Another user satirically described it as, “Buying now and selling to bigger fools later on.” Some supporters, however, believe the filing could attract new investors to the memecoin trend.
The spot DOGE ETF market suggests limited institutional enthusiasm. Hailey Lennon, a partner at Brown Rudnick, stated the crypto applications were now “getting embarrassing.” Since March, spot DOGE ETFs have recorded mostly days with zero net flows, highlighting weak demand.
Market data reveals a divergence in trader sentiment following the PEPE news. According to CoinGlass, retail traders were extremely bullish, but whales and smart money positioned themselves defensively. The price of PEPE fell approximately 10% in 24 hours after the announcement.
PEPE’s price, which soared 80% to $0.000007 in January, is now hovering near a yearly low. This price action indicates traders largely ignored the ETF filing. The community reaction has been overwhelmingly negative, with many urging regulators to reject the application.
