Canary Capital Proposes ETF for Injective Staking Rewards

Canary Capital, a prominent New York-based fund group, has proposed a new Exchange-Traded Fund (ETF) designed to offer investors regulated exposure to the native token of the Injective blockchain, INJ. The Canary Staked INJ ETF aims to provide direct access to Injective's staking ecosystem, allowing investors to benefit from staking rewards without the complexities of managing the tokens themselves.

The ETF, if approved, will enable investors to participate in the staking process, which involves holding and locking tokens to support the network's operations and earn rewards. The Injective Trust, established by Canary Capital, will stake a portion of the INJ tokens on the native Injective network. The staking rewards, which can vary depending on the selected validator, each with its own ranking and risk profile, will be passed on to investors.

This move by Canary Capital highlights the growing interest in altcoins and the potential for smaller networks to gain institutional recognition. The Injective network, which relies on 51 validators for its security, has seen increased activity in recent months. Despite its relatively smaller size, with around 71,000 daily active addresses, Injective has been actively building its DeFi sector, which currently has around $37 million in total value locked.

Injective's ambitions extend beyond traditional DeFi applications. The network is exploring Real-World Asset (RWA) tokenization, aiming to bridge the gap between traditional finance and the blockchain ecosystem. This initiative is part of Injective's broader goal to build comprehensive Web3 infrastructure, encompassing both on-chain activities and financial value.

The proposed ETF is part of a broader trend of funds incorporating on-chain passive income. Canary Capital's interest in INJ reflects a shift in focus towards eligible altcoins, which have often been overlooked in favor of more established cryptocurrencies. This trend is evident in the list of potential Canary funds, which includes LTC, TRX, SUI, and HBAR, in addition to the closely watched filings for XRP and SOL.

The filing of the Canary Staked INJ ETF with the US Securities and Exchange Commission (SEC) is a crucial step towards bringing staked INJ to Wall Street. If approved, this ETF will provide a regulated path for institutions and everyday investors to access the native Injective token through traditional brokerages and banking channels. This development is seen as a potential institutional recognition of Injective's technology and its role in the evolving crypto landscape.

Canary Capital had previously submitted ETF applications for XRP and Solana, and recently established a Delaware trust for the staked INJ fund to support regulatory approval efforts. The proposal lands during a crucial moment in U.S. crypto policy, as Congress debates multiple bills under the banner of Crypto Week 2025—decisions that could directly shape the future of this ETF and others like it.