Following spot ETFs in the cryptocurrency market, staking-focused ETFs are now making headlines. Asset management firm Canary Capital has submitted its application to the U.S. Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) based on the Injective (INJ) token and offering staking returns. The company's product, called "Canary Staked INJ ETF," will both track the price of Injective and aim to generate additional returns through staking.
ETF Application for Injective
This move is considered a step that could pave the way for staking-based ETFs in the U.S. The regulatory framework, previously focused solely on spot crypto ETFs, has begun to soften under President Donald Trump's pro-crypto administration. SEC officials have stated that the vast majority of staking activities do not fall under securities laws and therefore may not be subject to registration. SEC Commissioner Hester Peirce has also invited public feedback on the matter. Canary's new product comes amid a surge in staking-focused ETF initiatives in the US. As you may recall, REX-Osprey launched a Solana-based staking ETF earlier this month. Last month, the SEC also approved a multi-asset crypto fund from Grayscale, but this decision was later suspended.
Canary Capital isn't limited to its INJ ETF initiative. The company has previously filed applications for ETFs including Tron (TRX), Cronos (CRO), Sei (SEI), Litecoin (LTC), Sui (SUI), Hedera (HBAR), and even the Pudgy Penguins-themed PENGU token and NFT. These comprehensive applications reflect the company's strategy to expand its crypto asset portfolio. The company released the following statement regarding its Injective ETF application: “We filed this application in response to the overwhelming demand for staking-based products from both individual and institutional investors. This ETF aims to eliminate technical barriers and provide a regulated, secure gateway to a broader range of investors.”
Injective Labs, in its latest letter to the SEC, argued that regulatory clarity would create significant potential for DeFi and real-world assets (RWA). Injective CEO Eric Chen stated that the CLARITY Act, currently under consideration in Congress, would eliminate uncertainties and enable faster innovation on blockchain.
The INJ token, meanwhile, is trading at $13.92, up 3.94% on the back of these developments. The token reached an all-time high of $52.62 in March 2024. According to CoinGecko data, Injective's total market capitalization stands at approximately $1.3 billion, placing it 89th in terms of market capitalization.
