- Canary Capital filed with the SEC to launch a Mog Coin-based ETF.
- Mog Coin’s price briefly jumped before settling with 5.5% daily gains.
Canary Capital has filed regulatory documents to introduce an exchange-traded fund that would primarily invest in Mog Coin, a memecoin that is somewhat unknown in the cryptocurrency market. The proposal made to the Securities and Exchange Commission led to a short-lived increase in the digital token’s value on Wednesday. After the news, Mog Coin had a short rally and then it returned to around 5.5% of the gains made in the last 24 hours.
ETF Filing Details and Market Response
In the eyes of the new fund, Mog Coin would be a primary target for a direct investment. Among other things, Canary has characterized Mog Coin to be an internet meme culture-related token and a community-driven digital collectibles. In spite of the recent hype, the token is still worth less than a fraction of a penny and has fallen by more than 80% during the last year. The market valuation went from less than $140 million to a high of over $169.5 million and then dropped to about $146.3 million after the announcement of the filing.
According to the data, there are about 39,000 different wallets that currently have the token, which was launched in July 2023 on the Ethereum blockchain network. The top 100 holders have 53% of the tokens, pointing to a high degree of concentration among the big investors. Canary admitted that the token does not have any particular blockchain utility except for its cultural associations and being a meme-related brand in the crypto community.
The asset manager mentioned that as much as 5% of the fund’s assets might be required to be allocated to Ether in order to pay for blockchain transaction fees. Canary has submitted a series of cryptocurrency ETF applications, including products that track SEI network tokens, Litecoin, Hedera, and President Trump’s memecoin. The company has recently launched Hedera and Litecoin funds, while the XRP ETF application may get the green light as early as Thursday.
The SEC has restarted the review of cryptocurrency ETF proposals after President Trump signed the bill that ended the 43-day government shutdown this week. In expectation of the regulator’s decision, which was to approve streamlined listing standards last September, asset managers have filed a plethora of applications for highly speculative crypto products. Nonetheless, Canary cautioned investors that the cultural hype around Mog Coin might not be able to support itself in the long run or evolve into a significant use case.
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Source: https://thenewscrypto.com/canary-capitals-mog-etf-filing-sparks-interest-in-obscure-memecoin/
