(Reuters) -Canary Capital filed for regulatory approval on Wednesday to launch an exchange-traded fund that would track the price of the MOG coin, marking a first for the meme coin as money managers tap into the popularity of crypto ETFs.
The U.S. Securities and Exchange Commission has been flooded with filings for ETFs tied to cryptocurrencies and the agency is expected to resume its review process once the U.S. government reopens after the longest shutdown in history.
In September, the regulator removed the last remaining hurdle to dozens of new spot ETFs tied to cryptocurrencies, ranging from solana to dogecoin.
While the majority of digital asset ETFs so far have focused on mainstream tokens like bitcoin and ether, smaller ones are also gaining traction despite a lack of proven use cases.
In its ETF prospectus, Canary describes MOG as a meme coin.
A meme coin is a cryptocurrency that originates from internet jokes or viral online trends, with its value driven mainly by community hype and social media momentum.
The promoters and community associated with MOG have not announced any particular blockchain-based utility for MOG beyond its branding and cultural associations, Canary said in a filing.
Since MOG is dependent on the Ethereum network, the ETF may hold up to 5% of its holdings in ether for transaction costs.
Canary has picked U.S. Bank as the cash custodian for its holdings.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Sriraj Kalluvila)
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