Canary Capital Files for First Staked INJ ETF, INJ Price Jumps 14%

Canary Capital has submitted a filing to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) linked to Injective’s native token, INJ. The proposed fund, named the Canary Staked INJ ETF, is designed to track the price of INJ and distribute staking rewards to shareholders. This innovative structure allows investors to gain exposure to INJ without the need to hold the asset directly, automating the distribution of staking rewards through a regulated financial product. Canary Capital has noted a growing demand from both institutional and retail investors for this type of access, which traditionally involves managing private wallets and using on-chain interfaces.

The news of the ETF filing has had a notable impact on the price of INJ. At the time of writing, the token was priced at $14.40, reflecting a 5% increase in the last 24 hours and a 14% increase over the past week. Prior to a slight retracement, INJ reached over $13 for the first time in more than a month. This price surge indicates heightened market interest and optimism surrounding the potential approval of the ETF.

Canary Capital has already taken an early step in the regulatory process by registering a statutory trust for the fund in Delaware. Additionally, the firm has pending ETF filings tied to other digital assets, including XRP, TRON, Litecoin, Hedera, and PENGU. These applications are currently under review by the SEC, adding to the growing list of digital asset ETFs seeking regulatory approval.

The regulatory landscape for staking-based ETFs remains uncertain. While the SEC has approved ETFs linked to Bitcoin and Ethereum, staking-based ETFs have not yet received approval. A recent Solana fund that offers staking rewards launched without the same level of SEC review, creating ambiguity about the path forward for the Injective ETF. This filing comes as lawmakers consider a package of bills during what has been named “Crypto Week 2025.” Measures under review include the GENIUS Act and CLARITY Act, both of which may affect how staking-based financial products are treated under U.S. law.

Canary Capital’s filing for the first staked INJ ETF marks a significant development in the cryptocurrency market. The proposed ETF, if approved, would provide investors with exposure to INJ and the potential for passive income through staking rewards. This dual benefit is expected to attract a broader range of investors, including those new to the cryptocurrency space. The market's positive response, with INJ reaching monthly highs, underscores the growing interest in altcoin funds and the potential for staked ETFs to expand investment options in the cryptocurrency market.