A spot PEPE ETF would let investors own a meme coin through a stock exchange — and test whether regulators will treat internet-born assets like real securities

A spot PEPE ETF would let investors gain exposure to a meme coin through a regulated stock exchange — without buying or storing cryptocurrency directly. That possibility now hinges on a decision by the U.S. Securities and Exchange Commission, which has begun reviewing a formal application filed by Canary Capital.

The firm submitted an S-1 registration statement, the standard form for new securities offerings, seeking approval for a spot PEPE ETF. Unlike futures-based funds, a spot ETF would hold actual PEPE tokens. That structure demands the SEC evaluate whether the underlying market is resistant to manipulation, sufficiently liquid, and capable of secure custody.

PEPE has a market capitalization of approximately $3.5 billion and trades on major platforms like Binance, Coinbase, and Kraken. While smaller than Dogecoin or Shiba Inu, its presence on regulated exchanges may support arguments for market integrity. Still, the SEC has historically scrutinized digital assets for price volatility and opaque issuance — concerns amplified with meme coins, which lack fundamental utility.

If approved, the ETF would list on a traditional exchange such as Nasdaq or NYSE Arca. That access would open PEPE to institutional capital, including registered investment advisors and retirement accounts barred from direct crypto ownership. It would also subject the asset to federal reporting and oversight requirements.

The SEC’s decision will set a precedent for whether internet-born, community-driven tokens can qualify as legitimate underlying assets for regulated financial products.