Canary Capital Registers Trust for First Staked Injective ETF

Canary Capital Registers Staked Injective ETF in Delaware, Paving Road to SEC Filing

Canary Capital has taken a decisive first step toward launching the first U.S.-based Staked Injective (INJ) Exchange-Traded Fund (ETF) by registering a Delaware trust under the name “Canary Staked INJ ETF.” This strategic move positions the firm to bring a novel investment vehicle to American markets—one that offers exposure to both the spot price of Injective (INJ) and any staking rewards generated by INJ tokens.

What Is a Staked INJ ETF—and Why It Matters

The proposed Canary Capital ETF aims to encapsulate two separate value streams:

1. Price exposure to Injective (INJ) — Investors gain participation in the token’s market movements, just as with a traditional spot ETF.

2. Staking rewards credited to INJ holders — Instead of needing to stake tokens independently—which demands technical know-how, custody solutions, and validator management—investors in the ETF could receive staking income automatically, wrapped directly into their ownership.

Staking works by locking tokens in the Injective network to help secure and run the blockchain. In exchange, participants receive additional tokens as rewards. The ETF consolidates these mechanics into a single, tradable financial product—eliminating friction for institutional and mainstream investors alike.

Following the trust’s registration, INJ experienced a roughly 4% surge, with its price hovering around $13.62 . Data from CoinTelegraph notes a 3.7% price increase over a 24‑hour period, driven by the announcement .

The Delaware Trust: First Step in ETF Lifecycle

Creating a Delaware statutory trust is the initial legal and structural foundation for most U.S. ETF products. This trust provides a recognized entity to hold assets, issue shares, and work with custodians and administrators. However, forming the trust does not guarantee an eventual SEC approval or public launch .

As Cointelegraph explains, “Filing for a trust in Delaware is usually the first step an ETF issuer takes before further filings are made with the Securities and Exchange Commission”

What Lies Ahead: Regulatory Filings Await

Though formation of the trust is a key milestone, Canary Capital still faces pivotal legal steps:

• SEC Form S‑1 registration — A comprehensive filing that provides detailed disclosures on investment objective, risks, fees, structure, and operations.

• Exchange Form 19b‑4 submission — Filed with the exchange where the ETF will trade; includes specifics on how the fund will operate and be listed.

To date, neither form appears on the SEC’s EDGAR database, suggesting the formal review process has not yet begun.

Bankless Times confirms that both filings are essential steps before product listing, but their absence indicates early stage planning

Canary’s Broader Crypto ETF Strategy

Canary Capital is aggressively positioning itself in the emerging space of crypto-backed ETFs. Prior to INJ, the firm has taken similar actions with:

• Staked Cronos (CRO) ETF filing in May.

• Staked SEI (SEI) trust registration.

• Spot TRON (TRX) spot ETF with staking mechanics.

• Additional filings for tokens such as Solana (SOL), Hedera (HBAR), Axelar (AXL), and even NFT-associated Pudgy Penguins (PENGU).

• A prior spot SUI ETF, currently undergoing review delays by the SEC

These moves suggest Canary is building a comprehensive suite of crypto-anchored products targeting mainstream investor segments in the U.S.

European Competition and Proof of Concept

The pending U.S. offering is not Canary’s first foray into staking ETFs. In Europe, 21Shares has already launched a publicly traded Injective Staking ETP—ticker AINJ—on the Euronext markets in Paris and Amsterdam. This product is fully backed by INJ tokens, with staking yield automatically reinvested into the fund:

• 100% physically-backed

• Staking yields reinvested

• Institutional-grade cold custody

• Traded through major brokerages like Interactive Brokers and Saxo Bank 

AINJ’s success indicates market appetite and operational viability, proof that the U.S. could soon follow .

Regulatory Hurdles Ahead

Despite growing acceptance, crypto-staking ETFs face heightened scrutiny from the SEC. Regulators have raised concerns around whether staking-based products comply with existing securities laws and fund structures .

Notably, REX and Osprey Funds had their proposed ETH and SOL staking ETFs flagged by the SEC for potentially lacking registration under the Investment Company Act. However, Bloomberg analysts, such as Eric Balchunas, remain cautiously optimistic that regulatory compliance can still be navigated

Market Reaction and INJ Metrics

Injective, a layer-1 blockchain integrating DeFi, AI agents, and real-world asset tokenization, has seen positive network engagement. According to DappRadar, activity on Injective has grown in recent weeks.

Despite the costs of staking—estimated daily incentives of around $40,000 offsetting protocol fees with a net negative per-token return—INJ remains non-inflationary, with a total supply capped at approximately 100 million tokens, 97 million of which are currently circulating

Competitive Landscape and Market Significance

Several firms are now competing to bring next-gen staking-based crypto products to U.S. investors. Alongside Canary Capital, heavyweights such as 21Shares, Nasdaq, and others are submitting filings. For instance, 21Shares has also filed Form S-1 with the SEC for a SUI spot ETF.

21Shares’ AINJ sets a proven benchmark and demonstrates institutional demand, boltering confidence that U.S. staking ETFs can gain traction if regulators permit

What’s at Stake for Investors

A Staked INJ ETF would offer several advantages:

• Simplified access: No need for self-custody or validator setup.

• Automatic yield: Staking rewards collected and rolled into fund value.

• Transparent structure: Regulated trust and public filings.

• Scalable solution: Shares available via conventional brokerages with standard tax treatment.

Such innovations could spur mainstream adoption of blockchain assets, moving beyond retail and niche investor segments into institutional portfolios.

Conclusion: Awaiting the Next Steps

Canary Capital’s Delaware trust registration is both strategic and symbolic: a clear signal of intent and capability. However, the path forward remains dependent on crucial regulatory filings and approval, which could take several months.

Success will not only bring Injective staking into U.S. ETF markets but may also open the doorway for new, yield-generating crypto products. As competition ramps up—particularly from institutions like 21Shares and Nasdaq—the next phase of approvals and market entries will be critical in shaping digital asset investment.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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