Canary Capital Establishes Trust for Injective Token ETF, Token Gains 3.7%

Canary Capital, a prominent asset manager, has taken a significant step towards launching an exchange-traded fund (ETF) focused on the Injective token by establishing a trust in Delaware. This move is a common initial step for ETF issuers, as it sets the stage for further regulatory filings with the Securities and Exchange Commission (SEC). The Delaware Division of Corporations website confirms the formation of the entity “Canary Staked INJ ETF” on Monday, indicating Canary Capital's intent to offer a fund based around staked Injective (INJ).

The creation of a Delaware trust does not guarantee that Canary Capital will proceed with launching an ETF, but it is a strong indicator of their plans. Several crypto-tracking ETFs have started with the creation of a Delaware-based trust, suggesting that this could be a precursor to a formal ETF launch. Canary Capital has previously filed for an ETF in April to hold the Tron blockchain’s native token, TRX, and stake a portion of the tokens to generate yield. This experience could provide valuable insights into the regulatory and operational challenges of launching a staked crypto ETF.

The Injective token, which powers the Injective blockchain, has seen a modest rally in recent days, with a 3.7% gain over the last 24 hours following the announcement of the Delaware trust. The blockchain's X account shared the news on Monday, contributing to a broader trend of increased transactions and user activity. The Injective blockchain is known for its focus on artificial intelligence agents and tokenizing real-world assets and stocks, areas that are currently trending in the crypto space.

However, the regulatory landscape for crypto-staking ETFs remains uncertain. The SEC has expressed concerns that such ETFs might not comply with securities laws, as they could fail to meet the definition of an investment company. This concern was highlighted in a recent letter to REX Financial and Osprey Funds, which are seeking to launch ETFs tracking Ether (ETH) and Solana (SOL) with staking. Despite these regulatory hurdles, analysts remain optimistic that the companies and the SEC can find a way to overcome the legal challenges.