Investment firm Canary Capital has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking the Staked Injective (INJ) token.
This novel ETF aims to provide investors with exposure to the market price movements of the INJ token combined with the benefit of earning staking rewards generated by participating in the Injective network. The proposed structure is designed to offer these dual benefits within a regulated investment vehicle.
Analysts suggest the approval of a Staked INJ ETF could significantly enhance liquidity and market depth for the token. Such a move is seen as potentially broadening Injective’s investor base beyond traditional crypto natives while also indirectly supporting the underlying blockchain’s network security and ecosystem growth through staking participation.
Canary Capital’s filing aligns with a growing industry trend where asset managers are exploring integrating staking rewards into crypto-linked ETFs. Firms including 21Shares and Grayscale have previously sought SEC approval to include similar staking features in their proposed crypto ETFs, indicating a push for yield-generating products within regulated markets.
Staking-enabled ETFs are positioned to offer investors a potential avenue to earn yield, which can help mitigate the impact of cryptocurrency market volatility. This approach is packaged within a framework proponents argue offers greater transparency and regulatory oversight compared to direct token custody.
Highlighting the proposal’s significance, the co-founder of Injective stated that the envisioned ETF could foster a symbiotic relationship between investors and the blockchain’s ecosystem. This strategic move underscores the continued institutional exploration of mechanisms to integrate crypto yield generation into mainstream investment products.