The Chicago Board Options Exchange (CBOE) has some energizing news! They’ve filed with the Securities and Exchange Commission (SEC) to open a new exchange-traded fund (ETF), the Canary PENGU ETF. This filing is another sign of the rapidly increasing demand for digital assets and their incorporation within traditional financial products.

In fact, the proposed ETF has committed to invest at least 95% of its total assets in PENGU tokens. Under typical conditions, it would include some of their other related holdings. According to the filing, the trust "will not engage in proof-of-stake validation" and "will disclaim any incidental rights received, such as forks or airdrops".

ETF shares will be issued and redeemed in specified creation units of 10,000 shares. The convention center will be cashless for all transactions. This mechanism is designed to maintain the ETF's price in line with the net asset value (NAV) of its holdings. In the interest of transparency, the trust’s website will make daily NAVs, as well as historical data and the premium/discount available to the public.

The trust will not elect to be registered under the Investment Company Act of 1940. Further, it is not organized as a commodity pool. Canary later indeed file the Form S-1 for PENGU ETF. Every 15 seconds during trading hours, we’ll be publishing real-time intraday indicative values (IIVs). This will help give investors a more timely picture of the ETF’s worth.

The PENGU token, launched in December 2024 by the community-driven project Pudgy Penguins, is foundational to this new ETF. The white paper refers to PENGU as “a new kind of digital collector’s item” and a “utility token,” giving holders access to various services within the ecosystem.

"PENGU differs from native cryptocurrencies like bitcoin, ETH, and SOL as it doesn’t have its own underlying network or blockchain," - the document

The exchange emphasized the challenges associated with manipulating PENGU's price.

"The geographically diverse and continuous nature of PENGU trading renders it difficult and prohibitively costly to manipulate the price of PENGU," - the exchange

"manipulation of the price of PENGU on any single venue would require manipulation of the global PENGU price in order to be effective" - the exchange