Canary Capital Registers Trust for First Staked Injective ETF

Canary Capital Registers Injective ETF in Delaware: SEC Filing Next?

Canary Capital has come up with a huge step in introducing a new cryptocurrency product by registering a trust for its Staked Injective (INJ) ETF in Delaware. This step brings the organisation closer to offering an exchange-traded fund in the United States. It will not only keep a track of the price of Injective in the market but also includes staking rewards. It is a first for this cryptocurrency in ETF form. It is an Institutional Digital Assets Solution organisation. 

What Is the Staked Injective Exchange Traded Fund?

The planned Canary Product is created to offer investors exposure to two aspects: 

• The spot price of the crypto Injective (INJ)
  

• Additional INJ tokens earned via staking

Staking is a process where tokenholders lock up their cryptocurrency to assist operate the blockchain, and in return, they get rewards. With this product, investors would not need to keep INJ themselves or learn the whole technical procedure. Instead, holders could get both price exposure and staking rewards by only investing in the ETF. After this news the price of INJ has surged by 4% within the last 24 hours, currently trading at $13.62 as per the CoinMarketCap. 

What’s Next for Canary’s Exchange Traded Fund?

While registering the trust in Delaware is a major first step, it is not sufficient to bring the product to market. Canary Capital still requires to:

• File Form S-1 with the United States SEC
  

• Submit Form 19b-4 via the exchange where it will be listed

As of now, the filings have not appeared on the official website of SEC. It depicts meaning the review process has not started yet.

Canary Capital’s Growing Crypto ETF Plans

This is not the first time for Canary Capital with crypto-based ETFs. The firm has applied for ETFs tied to other tokens over the last few months, including Litecoin, Hedera, Solana, Tron ETF, SEI, and even meme token Pudgy Penguins. The new Staked Exchange Traded Fund is just another aggressive addition to its growing roster.

Canary had even applied for a SUI spot Exchange traded funds, but as with so many crypto filings, this one got held up too. The U.S. SEC has just delayed the it at this time. Although, this wave of new applications indicates increasing demand to introduce further crypto exposure into mainstream financial products.

Competition is Heating Up

Canary Capital is not the only one in this crypto product wave. 21Shares, a prominent name for crypto products, alongwith Nasdaq to submit its own SUI ETF. The company also just submitted Form S-1 to the SEC. This showcases that different companies want to offer crypto-based ETFs in the U.S. despite regulatory complexities.

21Shares has already brought to market a comparable product to Canary's proposal, an Injective Staking ETP entitled AINJ. It is 100% physically backed by INJ cryptos, which is traded on Paris and Euronext Amsterdam. AINJ re-invests staking rewards back into the product, providing investors with constant exposure to price and rewards.

Final Thoughts

Registration by Canary Capital of the trust in Delaware depicts a strong aim to bring a Staked Injective ETF to the United States market. While the product still requires approval from SEC, it could provide a distinct way to get into the ecosystem of the INJ, without the complication of direct staking. With major organisations taking part like 21Shares and bringing similar products in Europe, competition is clearly developing in the crypto products landscape.

As interest in staking-based products increases, investors can anticipate more innovative crypto investment alternatives to hit the market soon.