Canary Capital files for first staked Injective ETF in the US

Digital asset manager Canary Capital is looking to launch a staked Injective exchange-traded fund in the U.S., according to a filing on Thursday. This marks the latest so-called staking fund that would track the price of alternative crypto assets — such as ETH and Solana — while also accruing staking rewards. 

The firm submitted its first U.S. Securities and Exchange Commission filing Thursday morning for its Canary Staked INJ ETF, which would track the native asset of the Injective blockchain. This follows news from last month that Canary is setting up a trust structure in Delaware for the fund, which is typically a preceding step before an ETF issuer submits any documents to the SEC.

Staking ETFs remain a contentious issue in the U.S., despite an easing regulatory environment under President Donald Trump’s pro-crypto administration. SEC Commissioner Hester Peirce, for instance, has called for public input to clarify whether securities laws cover staking programs and, if so, how they can be structured to comply with these laws. 

Generally, the SEC’s leadership — including Chair Paul Atkins — has signaled that most crypto staking activities fall outside of securities laws and would not require registration. The agency is also developing guidance to streamline the approval process for crypto ETFs.

Earlier this month, the REX-Osprey Solana Staking ETF, the first staking ETF in the U.S., was launched. This ETF uses a different, more rigorous regulatory structure during its application. The SEC also approved a mixed crypto fund from Grayscale in July, although that approval was later paused.

“Canary Capital’s filing for the staked ETF is in response to significant and growing demand from both institutional and retail investors for regulated access to Injective,” the firm wrote. “As interest in staking-based products accelerates, this ETF aims to lower technical barriers and offer a compliant, secure entry point for a broader range of participants.”

Canary has previously filed for a staking ETF that would track Tron’s native TRX tokens, a spot-staked Cronos fund, and a staked SEI fund. It also has proposals related to Pengu, Sui, Hedera, and Litecoin. Asset manager 21Shares launched an Injective exchange-traded product in Europe in July, expanding its product lineup to 43 crypto-asset ETPs in the region.

Injective is an interoperable Layer 1 blockchain “operating at the intersection of DeFi and TradFi.” The project has raised funds from Binance, Jump Crypto, Pantera Capital, and Mark Cuban, among others. In a significant shift, Injective integrated native Ethereum Virtual Machine support for its Layer 1 earlier this year. 

INJ is up 3.94% on the day, currently exchanging hands at $13.92. The token hit a $52.62 all-time high in March 2024, according to The Block’s price page.