Solana News Today: Cboe Files First U.S. Staked INJ ETF Amid SEC Staking Clarity

Cboe’s BZX Exchange has filed a proposal with the U.S. Securities and Exchange Commission (SEC) for a spot exchange-traded fund (ETF) tied to the Injective Protocol (INJ) token, offering exposure to a staking-enabled altcoin for the first time in the U.S. market. The application, submitted on behalf of Canary Capital Group LLC, introduces the “Canary Staked INJ ETF,” which aims to track the performance of INJ while incorporating staking rewards, potentially enhancing yields for investors [1]. This move aligns with a broader industry trend of expanding ETF offerings beyond Bitcoin and Ethereum to include altcoins, particularly as regulatory clarity on staking mechanisms has improved under the Biden and Trump administrations. The SEC’s May 2024 guidance clarified that certain staking models may not qualify as securities offerings, reducing barriers for such products [1].

The filing follows recent approvals of spot ETFs for assets like Solana (SOL) and XRP, signaling growing institutional acceptance of altcoins. Cboe’s application also includes a separate filing for the Invesco Galaxy Solana ETF, underscoring a competitive push by major firms to secure first-mover advantage in the altcoin ETF space [1]. Analysts note that staking-enabled funds could attract capital by offering higher yield potential compared to traditional ETFs, though they introduce added complexity in risk management and regulatory scrutiny.

From a price perspective, INJ has shown technical indicators suggesting a potential breakout. Currently trading at $14.83, the token has consolidated within a bullish structure, with support at $12.75 and resistance near the upper Bollinger Band ($15.97). A successful breakout above this level could target Fibonacci extension levels of $21.68, $27.19, and $36.12, according to on-chain analysts [1]. The Relative Strength Index (RSI) at 60.36 and a mild bullish crossover in the MACD suggest sustained buying momentum, while the Balance of Power metric at 0.87 highlights strong investor demand.

The proposed ETF’s approval could act as a catalyst for INJ’s price, particularly if institutional adoption follows a pattern similar to Bitcoin and Ethereum ETFs. Analysts forecast that a $18.27–$21.68 price range might become critical if the product gains regulatory approval, as increased liquidity and institutional participation could drive demand [1]. However, the SEC’s final decision remains pending, and the broader altcoin market faces challenges such as regulatory uncertainty and macroeconomic headwinds.

The filing reflects a strategic shift in the ETF landscape, where innovation in yield-bearing assets is gaining traction. With the SEC’s recent framework for staking models and the growing appetite for diversified crypto exposure, the “Canary Staked INJ ETF” could pave the way for similar products. Market participants will closely watch the regulatory response and subsequent price action to gauge the token’s trajectory.

Source: [1] https://coinedition.com/cboe-files-for-first-of-its-kind-staked-injective-inj-etf/