The U.S. Securities and Exchange Commission (SEC) has initiated a 21-day public comment period for Canary Capital's proposed staked Injective (INJ) exchange-traded fund (ETF), according to filings dated August 25, 2025. This ETF aims to track the native token of the Injective blockchain while integrating staking rewards, potentially listing on the Cboe BZX Exchange upon approval.
Canary Capital, formerly led by Valkyrie CIO Steven McClurg, first established a Delaware trust structure in June 2025 to support the fund. The proposed ETF would directly hold INJ tokens and delegate a portion to validator staking pools or custodian staking services to earn incentives for investors. Canary argues that Injective's market capitalization of over $1.3 billion and its global liquidity make it suitable for an ETF, reducing concerns about market manipulation.
This development follows the SEC's recent approval of the first U.S. Solana staking ETF managed by REX-Osprey, signaling a regulatory shift toward greater acceptance of staking-based crypto products. The SEC has clarified that most proof-of-stake features and certain liquid staking activities fall outside securities laws, lowering barriers for such products.
The public comment period ends in mid-September 2025, after which the SEC has up to 90 days to decide on the proposal. Approval could enhance INJ's liquidity and adoption, setting a precedent for future staking ETFs. However, the SEC remains cautious about investor security, market manipulation risks, and the complexity of staking mechanisms.