What is PENGU ETF? A simple guide to NFT ETF

What is PENGU ETF?

PENGU ETF is ETF (Exchange Traded Fund).

• Penguin (link Penguin Ecosystem)
• Pudgy Penguins NFTS (Actual NFT, as well as tokens representing them)

This is different from other NFT -related ETFs. Other NFT -related ETFs usually have stocks of a company tied to NFT, not NFTS. The Pengu ETF puts the actual NFT in the first regulatory fund.

Who is behind the Pengu ETF?

The company of PENGU ETF is Canary capitalDigital Asset Investment Company. They specialize in encryption and NFT financial instruments. Their goal? To bring Web3 assets to existing finance (Tradfi).

When this ETF is approved, the Canary Capital becomes the first person to directly include NFT directly in the ETF. This can reconstruct NFT investment.

How is the Pengu ETF configured?

Pengu ETF follows this assignment.

Since NFT is difficult to trade quickly, ETH and SOL will help the fund maintains liquidity.

Why is Pengu ETF important?

This ETF can be a game changer of NFT in traditional finance. The reason is:

1. The first ETF with the actual NFT Most NFT -related ETFs have only stocks or tokens. This includes actual digital collections.
2. Bridge NFTS and Tradfi -The institutional investors can use NFT more easily.
3. New liquidity strategy -Exing ETH and SOL in the fund helps to solve. NFT liquidity problem.

But some investors are skeptical. They question whether there is enough demand for this ETF.

How does Pengu ETF work?

This work has never been completed before, so the details are unclear. However, the method based on other ETFs and art funds is as follows.

• investor Buy stocks In ETF, it is not NFTS itself.
• Funding I have NFT and penguin tokens In refrigeration storage.
• ETH And sleep It helps to provide liquidity ETF stock purchase and sales.
• The NFT value is updated accordingly Market price and sales data.

Is Pengu ETF approved?

Canary Capital Applied does not mean that ETF will soon be released. that SEC has never approved NFT ETF.. The biggest concern is:

• Price NFT -In unlike BitcoinNFT is unique and more valuable.
• Fluidity NFT is not as easy to trade as stocks or encryption.
• Risk of custody Storing NFTS safely is different from holding Bitcoin or existing assets.

Nevertheless, the SEC has recently approved SPOT BITCOIN ETF, which means that it is warming up with digital assets. If Pengu ETF meets regulatory requirements, it can be an opportunity.

How is Pengu ETF compared to art funds?

Traditional arts have existed for many years. Comparison is as follows:

Unlike traditional art funds, Pengu ETFs bring real digital collections to regulated space.

The future of NFT ETF

Whether the Pengu ETF is approved is only the beginning. More NFT support ETFs can follow. Future funds may include:

Canary Capital may be the first, but not finally.

Pengu ETF is an ambitious attempt to merge NFT with traditional finance. If approved, people can change the way people invest in digital assets. But regulatory problems still remain. Regardless of success, NFT is getting closer to mainstream finance.