Canary Capital has taken a significant step toward offering a new cryptocurrency investment vehicle by registering a Delaware trust named “Canary Staked INJ ETF.” This move indicates the company’s intent to launch an exchange-traded fund (ETF) focused on the native token of the Injective blockchain (INJ), with exposure to staking rewards. The creation of a Delaware trust is typically the initial regulatory formality preceding further filings with the Securities and Exchange Commission (SEC), which is necessary for an ETF to be approved for trading on U.S. exchanges.
Though establishing a Delaware trust does not guarantee that an ETF will launch, multiple existing crypto ETFs began with similar registrations. Canary Capital has previously filed for ETFs involving other crypto assets such as TRX (Tron) that also include staking components. Meanwhile, the firm 21Shares recently introduced a similar Injective-tracking ETF product in Europe that incorporates staking yield reinvestment.
The Injective token saw a price increase of approximately 3.7% in 24 hours following news of the Delaware trust formation, extending a modest rally with over 10.5% gains over the week. This price momentum correlates with slightly increased transactions and user activity on the Injective blockchain.
Injective positions itself as a layer-1 blockchain specializing in AI agents and tokenizing real-world assets, aligning with current crypto sector trends. Nevertheless, the regulatory environment remains cautious, as the SEC has expressed concerns regarding staking ETFs and whether these fund structures comply with securities law definitions. Recent SEC communications pointed out that staking ETFs with current designs might not meet investment company criteria.
Despite legal hurdles, experts remain hopeful that fund issuers and regulators can resolve issues to allow staking ETFs to thrive. Canary Capital’s registration of the staked INJ ETF trust underscores a broader push into crypto-based ETF investment products and highlights the evolving dialogue between asset managers and regulators.