Canary Capital Launches First Injective ETF in USA

Canary Capital, a digital asset manager, has filed to launch a staked Injective exchange-traded fund (ETF) in the U.S. This ETF will track the performance of Injective’s native asset while providing staking rewards. The filing was submitted to the U.S. Securities and Exchange Commission (SEC) on Thursday morning. Previously, Canary Capital established a trust structure in Delaware, a prerequisite for ETF filing with the SEC. Despite a more favorable regulatory climate under the Trump administration, staking ETFs remain controversial in the U.S. SEC Commissioner Hester Peirce seeks public input on how securities laws relate to staking programs. SEC leadership, including Chair Paul Atkins, has indicated that most crypto staking activities might not classify as securities, potentially easing registration requirements. Earlier this month, the REX-Osprey Solana Staking ETF launched, representing the first U.S. staking ETF under a strict regulatory framework. Additionally, the SEC approved a mixed crypto fund from Grayscale in July, though that decision was temporarily halted. Canary Capital cited the growing demand from both institutional and retail investors for regulated access to Injective in their ETF filing, responding to the accelerating interest in staking products. They aim to simplify access for a diverse range of participants. Canary has a history of filing for various staking ETFs and is expanding its offerings, including proposals related to other crypto assets. The Injective blockchain is known for its interoperability between decentralized finance (DeFi) and traditional finance (TradFi), receiving backing from prominent investors like Binance and Mark Cuban. As of now, the price of INJ is at $13.92, having reached an all-time high of $52.62 in March 2024.