SEC Filing: Canary Plans Staked Injective ETF
The digital asset investment manager Canary Capital has filed a request with the U.S. Securities and Exchange Commission (SEC) to debut a new Exchange-Traded Fund (ETF) offering exposure to staked Injective (INJ) tokens.
Key facts
- Canary applied for the staked Injective ETF via an SEC filing on July 20.
- INJ is the native token of the Injective blockchain, a layer-1 blockchain focused on decentralized finance (DeFi).
- If approved, the fund would enable investors to track the price of INJ while simultaneously earning staking rewards by locking up their tokens.
Staking is a process where participants “lock up” their cryptocurrency assets to secure a blockchain network, earning additional tokens as a reward for providing computational resources and network validation.
“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,”
– Injective representative, July 20, 2023
According to the filing, Canary established a Delaware Trust earlier this month to support this legal framework for the proposed fund.
This latest filing is part of a growing trend among financial institutions and issuers seeking to provide staking capabilities within regulated crypto ETF structures for U.S. investors.
Why Staking Matters
Injective co-founder Eric Chen highlighted the appeal of staking integrated into ETFs.
“Investors don’t lose out,” Chen told Decrypt. “You’re earning yield from staking and at the same time you’re providing very critical service to support the Injective ecosystem.”
Staking tokens allows investors to generate returns without actively managing private keys or running staking nodes.
Context and Competition
Canary is not the first asset manager exploring staked INJ or similar options. 21Shares launched an AINJ staked product for European investors about a year ago.
The move comes as other major players also seek to incorporate staking features.
Asset managers, including Grayscale and others, are petitioning the SEC for staked offerings beyond Bitcoin and Ethereum, though structured products providing staking yields specifically are still awaiting regulatory approval.
Injective (INJ), the 88th largest cryptocurrency by market value, was recently trading at $13.84 according to data provider CoinGecko.
Securities and Exchange Commission approval is not assured.
