Canary Capital Files for Staked Injective ETF to Meet Altcoin Demand

Canary Capital has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to introduce a staked Injective exchange-traded fund (ETF). This move is part of a broader trend where issuers are seeking to meet the growing demand for altcoin-focused investment products. The proposed ETF would allow investors to track the price of Injective's native token, INJ, while also participating in staking, a process where cryptocurrency holders lock up their assets to secure a network in exchange for rewards.

The filing is one of several requests by issuers and exchanges to make crypto-based ETFs with staking available to U.S. investors. According to an Injective representative, the ETF aims to lower technical barriers and offer a compliant, secure entry point for a broader range of participants as interest in staking-based products accelerates. Canary established a Delaware Trust last month to lay the legal groundwork for its staked Injective ETF.

This latest filing comes as issuers increasingly aim to incorporate staking into their crypto-based funds. Asset managers, including 21Shares and Grayscale, are petitioning the SEC to add staking to some of their ETFs. In June, the SEC seemed to give REX-Osprey the go-ahead to debut a pair of Ethereum and Solana ETFs with the yield-bearing feature. Staking tokens is attractive to investors because it allows them to maximize their returns. Injective co-founder Eric Chen noted that investors do not lose out on potential gains, as they earn yield from staking while providing critical support to the Injective ecosystem.

Canary is not the first asset manager to put staked INJ in an ETF wrapper. 21Shares debuted an AINJ exchange-traded product for European investors nearly a year ago. However, this latest proposed fund will allow Injective to expand its reach. Chen stated that the proposed fund would not just interface with the U.S. investor base but also allow for the global investor base, both institutional and individual, to have access to products related to Injective.