The ETF game has moved beyond the “new player” narrative in the blockchain space, with institutions increasingly investing in memecoins. The previous year was characterized by a couple of approvals that included major altcoins.
However, the start of this year appears to have been uneventful.
SEC delays decision on Grayscale’s PENGU ETF
The U.S. Securities and Exchange Commission delayed its decision on Grayscale’s Pudgy Penguins [PENGU] ETF until the 11th of March.
The extension granted the Commission an additional 60 days to review the proposed rule change, according to the filing.
That delay followed the SEC’s initiation of proceedings in September 2025, pushing the final deadline beyond the original January timeline.
From a sentiment perspective, such delays often weighed on short-term price action. The decision also affected broader crypto ETF proposals, including T. Rowe Price’s multi-asset filing.
While that appears to be bearish, smart money is taking advantage of the silence in the memecoin.
This could negate this outlook, flipping the market to bullish now that the memecoin market has been the best performer since the start of the year.
Institutions buy more but volume cools off
On that note, institutions have been on a buying spree over the past month. In fact, Digital Finance Group added more than 21.2 million PENGU over the last 30 days.
This smart money addition meant the institution joined other active funds in the accumulation process. Sigil Fund held 45.5 million tokens valued at $557K, while Moonrock Capital had $33.7K PENGU.
That was not the end of smart money involvement, as DevmonsGG added 6.7 million PENGU tokens.
Despite this massive buying by institutions, the volume cooled off from a high of $14 million to around $5 million. This explained the reason behind the accumulation, as big players like to act when the market is weak.
How is PENGU’s price action affected?
The price action was a reflection of the ETF delay and volume decline. PENGU’s price was ranging around $0.01166, but its mindshare was exploding.
The strong green candle that emerged on the 4-hour chart was a sign of a breakout. To back this up, the MACD had been red but now had printed the first bullish bar.
The delayed decision by the SEC may have derailed the price breakout. Alternatively, it could be a market-wide correction after the rally in the first week of January.
A break above $0.01300 could fuel the price toward $0.013779, whose eventual breach would shift the current outlook.
Final Thoughts
- Regulatory delays often test market patience, but they do not always dictate institutional behavior. In PENGU’s case, steady accumulation during low-volume conditions suggested longer-term positioning rather than short-term reaction.
- Whether that conviction translates into follow-through may depend on how the price responds once regulatory clarity returns.
