Canary Capital, a hedge fund manager, has submitted a filing to the U.S. Securities and Exchange Commission for the launch of an exchange-traded fund linked to Injective's INJ token, as disclosed in a Thursday filing. The proposed Canary Staked INJ ETF is designed to track the price of INJ while offering staking rewards to investors.
As the native token of the Injective blockchain, a layer-1 protocol focused on decentralized finance applications, INJ is poised to benefit from this new investment vehicle. According to a press release, the firm has observed substantial and increasing demand from both individual and institutional investors for regulated access to Injective, prompting the creation of this ETF to simplify staking-based crypto investments and lower technical barriers. By allowing token holders to secure a blockchain network and earn periodic rewards in return, staking is a key feature of this proposed ETF.
This filing contributes to Canary Capital's expanding list of pending cryptocurrency ETFs, which also includes proposals for tracking LTC, Hedera, SUI, TRX, XRP, and the PENGU token. Although the SEC has approved spot bitcoin and ether ETFs, it has yet to officially sanction any ETFs incorporating staking yields.
A Solana ETF with staking features was launched earlier this month without requiring regulatory approval.