Cboe Files Staked Injective ETF with Staking Rewards, Leveraging SEC's 2025 Guidance

The Chicago Board Options Exchange (Cboe) has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a novel exchange-traded fund (ETF) tied to Injective Protocol’s INJ token, featuring staking rewards for investors. The initiative, spearheaded by investment firm Canary Capital Group LLC, introduces the Canary Staked Injective ETF, which aims to offer exposure to the token’s price movements while generating additional returns through blockchain staking [1].

The proposed ETF diverges from conventional cryptocurrency ETFs by incorporating staking mechanisms. Investors would not only track the market value of INJ but also earn passive income by locking tokens on the Injective blockchain to support network operations. Rewards generated from staking would be distributed directly to investors, creating a dual-income stream. Canary Capital plans to leverage a regulated staking provider to manage the technical aspects of the process, ensuring compliance and transparency [1].

This filing reflects broader shifts in the regulatory and investment landscapes. In May 2025, the SEC’s Division of Corporation Finance issued guidance suggesting certain staking activities might not constitute securities offerings, prompting firms to explore staking-based products. The Canary Staked Injective ETF aligns with this trend, capitalizing on the growing demand for DeFi-linked passive income strategies [1].

The proposal also coincides with Cboe’s parallel application for the Invesco Galaxy Solana ETF, signaling a push to expand spot ETF access to altcoins beyond Bitcoin and Ethereum. If approved, the Canary ETF would join two existing staking-enabled products—those tied to Solana and Ethereum—as the third of its kind in the U.S. [1].

The SEC’s two-step approval process requires an initial S-1 registration and a subsequent 19b-4 filing from the listing exchange. While regulatory outcomes remain uncertain, the filing underscores the maturation of crypto markets and the integration of DeFi concepts into traditional financial instruments. The success of this model hinges on investor appetite for yield-enhancing structures and the SEC’s continued evolution of staking-related frameworks [1].

Source: [1] Cboe Files to List Canary’s Staked Injective ETF (https://coinmarketcap.com/community/articles/6888c36d58697e16ef15886d/)