In a significant move for cryptocurrency investment products, Canary Capital has filed a proposal for the first U.S.-based staked Injective (INJ) ETF, aiming to track both the token’s price movements and its staking rewards within a regulated investment vehicle.
The proposal, submitted in July 2025, would list the product on the Cboe BZX Exchange and has now entered a 21-day public comment period following formal submission to the SEC.
The regulatory body must issue a decision or extension within 90 days, marking another chapter in the SEC’s evolving approach to cryptocurrency investment products.
This review comes amid broader consideration of staking-based ETFs, potentially creating a template for similar products if approved.
Structured as a Delaware trust—the financial equivalent of choosing the most popular kid in school as your lab partner—the ETF would provide investors indirect exposure to Injective’s staking rewards without the technical hurdles typically associated with blockchain staking.
For traditional investors, it’s like getting the cake (INJ price exposure) and eating it too (staking yield) without having to bake anything yourself.
The proposal highlights Injective’s $1.4 billion market capitalization and “geographically diverse and continuous” trading as factors reducing manipulation risk compared to traditional securities.
This emphasis on market maturity appears strategically designed to address regulatory concerns that have historically slowed crypto ETF approvals.
While the U.S. currently lacks staking ETFs for INJ, Europe already hosts the 21Shares Injective Staking ETP, providing a regulatory precedent.
Recent SEC openness to spot Bitcoin and Ethereum ETFs suggests a pathway, though staking products add a yield dimension absent from these predecessors.
Like traditional ETFs, the Injective product would offer superior tax efficiency compared to directly holding and staking the token.
Neither the SEC nor Injective Labs has issued official positions on the proposal’s prospects.
This filing follows Canary’s recent submission of a Made in America crypto ETF that also includes Injective among other U.S.-focused tokens.
If approved, the product would join Canary Capital’s strategic push into innovative ETFs, potentially broadening institutional participation in the Injective ecosystem while boosting liquidity and market stability. The ETF’s launch would coincide with INJ’s current upward trajectory, having gained 21.03% over the past two months despite some decline in trading volume.
