TL;DR
- Canary Capital’s ETF brings INJ exposure and staking rewards without requiring direct asset ownership.
- INJ jumped by over 8% after ETF news, with daily trading volume exceeding $209 million.
- ETF filing follows Delaware trust registration and joins pending applications for XRP, TRON, Litecoin, Hedera, and PENGU.
Canary Capital Pushes INJ ETF Forward
Canary Capital has submitted a filing to the U.S. Securities and Exchange Commission (SEC) for an ETF linked to Injective’s native token, INJ. The proposed fund, called the Canary Staked INJ ETF, aims to track the token’s price while also passing staking rewards to its shareholders.
With this innovative structure, Canary Capital allows investors to gain exposure to INJ without the need for direct asset ownership. The fund is designed to distribute staking rewards earned by locking tokens, ensuring security for the underlying blockchain.
Traditionally, staking involves substantial management through private wallets and on-chain interfaces. The proposed ETF simplifies this process by automating reward distribution through a regulated financial product. Canary Capital has recognized a growing demand from both institutional and retail investors for this simplified access.
INJ Price Gains Following Announcement
The announcement of the ETF filing has generated significant market activity surrounding INJ. At the time of writing, the token was priced at $14.40, reflecting a 5% increase within 24 hours and a notable 14% surge over the past week. Just before a slight retracement, INJ soared to over $13 for the first time in more than a month.
Additionally, the daily trading volume has surpassed $226 million, signaling robust interest as market participants respond to the prospect of regulated investment through an ETF format. Notably, Canary Capital has completed the registration of a statutory trust for the fund in Delaware, marking an important step in the regulatory journey.
Canary Capital is not stopping at INJ; they also have pending applications for ETF filings linked to several other digital assets, including XRP, TRON, Litecoin, Hedera, and PENGU. These applications are currently under review.
Regulatory Developments May Shape ETF Path
While the SEC has approved ETFs tied to Bitcoin and Ethereum, staking-based ETFs remain uncharted territory. A recent Solana fund that offers staking rewards has launched without requiring an extensive SEC review process, thereby fostering uncertainty about how the Injective ETF will unfold.
Moreover, the timing of this filing coincides with lawmakers discussing a range of bills dubbed “Crypto Week 2025.” Among the measures are the GENIUS Act and the CLARITY Act, which could significantly influence how staking-based financial products are treated under U.S. law.
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