Cboe Files for Injective ETF: A Major Step Toward the Era of Staked Altcoins in the U.S.

Cboe's Injective ETF Bid Marks a Turning Point for Staked Crypto Funds in U.S. Markets

In a bold stride that may redefine the trajectory of staked cryptocurrency investment products in the United States, the Cboe BZX Exchange has officially filed with the U.S. Securities and Exchange Commission (SEC) to list a new exchange-traded fund (ETF) based on Injective Protocol’s (INJ) native token. The proposed ETF, dubbed the "Canary Staked INJ ETF," represents a landmark moment in the development of staking-based crypto investment products.

Filed on behalf of Canary Capital Group LLC, this proposal could usher in a new generation of digital asset ETFs that not only offer exposure to a specific crypto asset but also deliver potential staking rewards—mirroring the actual yield-generating mechanics of blockchain protocols.

The Rise of Injective and ETF Ambitions

Injective Protocol, a decentralized layer-one blockchain optimized for finance applications, has steadily gained traction in recent years. Known for its interoperability, high performance, and native support for derivatives, Injective has attracted a growing developer and investor base. As of this filing, Injective’s native token (INJ) is trading at approximately $14.81. Despite the buzz surrounding the ETF news, the token has yet to see a significant price surge.

Source: CoinMarketCap

Canary Capital’s proposal highlights its strategic aim: to develop a yield-bearing investment product that combines the accessibility of traditional finance with the technical advantages of decentralized networks. If approved, the Canary Staked INJ ETF would provide traditional equity investors a bridge into the world of blockchain staking without the complexities of self-custody or delegation.

What Makes This ETF Unique?

Unlike conventional crypto ETFs that simply track the spot price of digital assets, the Canary Staked INJ ETF includes a staking component. This means that beyond market performance, the fund could offer returns derived from Injective’s native staking rewards—an attractive proposition in the current yield-hungry financial climate.

This marks one of the first serious efforts to integrate a staking-based altcoin ETF into U.S. equities markets, reflecting growing institutional appetite for income-generating digital asset products.

A Regulatory Climate Turning More Favorable

The timing of this filing is noteworthy. Since the beginning of 2025, under the leadership of President Donald Trump’s new administration, U.S. financial regulators have taken a noticeably more favorable stance toward digital assets. The SEC has already approved spot Bitcoin and Ethereum ETFs, following a pivotal court ruling in 2024 that reshaped regulatory interpretations of cryptocurrency-related offerings.

In May 2025, the SEC’s Division of Corporation Finance issued a clarifying statement noting that certain blockchain staking activities may not qualify as securities offerings—an important regulatory milestone. This nuance has allowed room for ETF issuers to explore staking-enabled products without violating longstanding securities laws.

The Broader Race Toward Crypto ETF Innovation

While the Canary filing marks a significant first for Injective, it comes amid a wave of new ETF proposals targeting altcoins. The SEC is concurrently reviewing applications for spot ETFs tied to Solana (SOL), Dogecoin (DOGE), and XRP, signaling a potential expansion of regulatory green lights beyond just Bitcoin and Ethereum.

Meanwhile, other firms are also pushing the boundaries of ETF structures. Rex-Sprey, for instance, introduced the first staked crypto ETF in the U.S. earlier this year, albeit under a different jurisdictional framework. The Cboe’s attempt to enter this space through the Canary product could amplify the trend of blending staking mechanics with traditional finance structures.

Investor Demand for Yield-Generating Crypto Instruments

In a global environment characterized by interest rate uncertainty and inflationary concerns, investors are increasingly drawn to opportunities that provide sustainable yield. Staked cryptocurrencies represent a compelling solution, especially when packaged into familiar financial vehicles like ETFs.

The potential approval of the Canary Staked INJ ETF would mean that everyday investors could gain passive exposure to Injective’s performance and staking yield—without setting up a wallet or interacting with smart contracts.

This democratization of crypto yields comes at a crucial time. Institutional and retail investors alike are demanding more diversified access to digital assets. A successful rollout of this ETF could significantly expand Injective’s visibility and investor base, potentially driving deeper liquidity and increased developer interest in the Injective ecosystem.

Challenges and Uncertainties Remain

Despite the momentum, regulatory hurdles remain. The SEC is still cautious about investor protections, and the novelty of staking-based ETFs could prompt extended review periods. Key concerns include transparency in reward distribution, security of staked assets, and the mechanisms used to ensure compliance with fund governance rules.

Furthermore, with INJ’s relatively modest market capitalization compared to Bitcoin or Ethereum, questions about liquidity and price volatility will likely be at the forefront of regulatory evaluations. Nonetheless, the filing itself indicates a growing willingness among issuers and exchanges to push forward despite uncertainties.

A New Chapter for Altcoins on Wall Street

The Canary Staked INJ ETF may become a pivotal moment not only for Injective but for the broader altcoin market. As regulatory frameworks evolve and investor interest in passive income strategies grows, the path forward for staked digital asset ETFs is likely to broaden.

Whether this specific ETF gains approval or not, its mere existence signals a maturing crypto market that’s increasingly intertwined with traditional financial systems. It reflects a shift in sentiment—from speculative trading toward structured, yield-based investing in blockchain assets.

Conclusion: Momentum Is Building

The filing of the Canary Staked INJ ETF by Cboe and Canary Capital marks a significant milestone in the development of advanced crypto ETFs. If successful, this could be the start of a broader movement toward legitimizing and mainstreaming staking-based financial products.

For Injective, the move could usher in fresh waves of interest and innovation. For the ETF market, it may represent a leap forward in offering diversified, income-generating investment products. And for the U.S. crypto regulatory landscape, it signals continued evolution toward clearer, more flexible policies that balance innovation with investor protection.

As we await the SEC’s response, one thing is clear: the race to redefine crypto ETFs is well underway—and staking-based products like the Canary Staked INJ ETF may soon become central to that transformation.

Writer @Ellena

Ellena 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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