Key Takeaways
- Canary Capital submitted an S-1 registration with the SEC on Wednesday for a spot PEPE exchange-traded fund
- The PEPE token lost 4.58% of its value on Wednesday and extended losses into Thursday, dropping below $0.0000036
- Trader sentiment turned bearish as the long-to-short ratio fell to 0.81, marking the lowest point in more than 30 days
- Negative funding rates of -0.0081% indicate short sellers are compensating long holders
- With over 420 trillion tokens in circulation, PEPE maintains a $1.5 billion market capitalization
On Wednesday, Canary Capital submitted an S-1 registration document to the U.S. Securities and Exchange Commission, requesting authorization to introduce a spot exchange-traded fund based on Pepe. This filing focuses on tracking the valuation of PEPE, the amphibian-themed memecoin that debuted in April 2023.
CANARY CAPITAL FILES FORM S-1 FOR $PEPE ETF pic.twitter.com/Crt7RtyJg0
— The Wolf Of All Streets (@scottmelker) April 8, 2026
Contrary to expectations, the announcement failed to generate upward momentum for PEPE’s valuation. The digital asset surrendered 4.58% on Wednesday and continued its downward trajectory through Thursday, settling beneath the $0.0000036 threshold.
Canary Capital has demonstrated significant interest in the memecoin ETF sector. During the previous year, the investment firm submitted applications for exchange-traded funds following MOG and Pengu, establishing itself as among the limited number of asset management companies advocating for investment vehicles connected to niche, meme-inspired digital currencies.
The regulatory filing acknowledges that PEPE lacks functional utility. The token operates exclusively as a speculative instrument with a circulating supply exceeding 420 trillion units.
Should the ETF receive regulatory approval, conventional investors would gain the ability to acquire PEPE exposure without direct token ownership. This development could potentially enhance market liquidity and confer institutional credibility to the digital asset. However, such outcomes would materialize only following approval and implementation.
Market Data Reveals Bearish Momentum
Blockchain analytics from CryptoQuant reveal uncertain market conditions with emerging bearish indicators. Derivatives trading activity suggests sellers have gained control.
According to CoinGlass, PEPE’s long-to-short ratio declined to 0.81 on Thursday. This represents the weakest reading recorded in more than a month. When this ratio falls below 1.0, it signals that more market participants are positioning for price declines rather than increases.
Funding rates have also inverted to negative territory, registering -0.0081% on Thursday. Negative funding rates indicate that short position holders are compensating long position holders — a clear indication of bearish sentiment within derivatives markets.
Substantial whale transactions were observed across both spot and futures trading venues, which certain market analysts interpret as moderately encouraging. Nevertheless, the prevailing market sentiment remains conservative.
Critical Support and Resistance Zones
PEPE momentarily surpassed the 50-day Exponential Moving Average at $0.0000036 on Tuesday, recording gains exceeding 11%. The token failed to sustain this elevation and retreated during the following session.
$PEPE https://t.co/ZSbxNWhyDS pic.twitter.com/ccKNSHNxfC
— Greeny (@greenytrades) April 8, 2026
Should the downward trend persist, the immediate support zone rests at Tuesday’s bottom of $0.0000033. A decisive breach below this threshold could push PEPE toward the February 6 bottom of $0.0000031.
The Relative Strength Index on the daily timeframe stands at 50 with a downward trajectory, indicating diminishing bullish momentum. The Moving Average Convergence Divergence continues to display a bullish intersection from the previous week, which remains valid.
As of Wednesday at 5:49 p.m. ET, PEPE was exchanging hands at $0.0000036 with a total market capitalization of $1.5 billion.
