If approved, the fund would list on the Cboe BZX Exchange, joining a growing wave of crypto-based ETFs entering U.S. financial markets.
The U.S. Securities and Exchange Commission is reviewing a new proposal that could further expand crypto-based exchange-traded funds in the United States. Canary has filed to introduce a staked Injective (INJ) ETF, designed to combine exposure to Injective’s native asset with the benefits of staking yields. The agency confirmed on Monday that public comments must be submitted within 21 days, while the SEC itself has up to 90 days to issue its next move, depending on market feedback and internal deliberations.
The filing highlights Injective’s rapid growth, underscoring its $1.4 billion market capitalization and wide distribution of trading activity across exchanges worldwide. Canary argued that the decentralized and around-the-clock trading of INJ makes market manipulation more difficult compared to traditional assets such as equities, bonds, or commodity futures. This perspective aligns with broader pro-crypto arguments that digital assets are evolving into robust, transparent markets with global liquidity, enhanced investor participation, and increasing relevance for institutional strategies.
Injective has recently gained attention as a blockchain optimized for decentralized finance applications, with developers praising its scalability and interoperability. If the ETF is approved, it would not only provide traditional investors with direct access to INJ but also incorporate staking rewards, potentially making it one of the first regulated products in the U.S. to reflect this emerging model with strong institutional appeal.
The SEC’s willingness to consider staking-linked ETFs reflects a noticeable shift in regulatory tone. Earlier this year, VanEck submitted a proposal for a JitoSOL ETF backed by Solana’s liquid staking token, while REX-Osprey moved forward with a Solana staking ETF in partnership with JitoSOL. These developments suggest that staking products are being taken more seriously as part of institutional portfolios, signaling higher confidence in crypto infrastructure.
Although the SEC has previously delayed decisions on several crypto funds, such as the WisdomTree XRP Fund, the environment under the current administration appears more favorable for innovative crypto financial instruments. For investors, the Canary Staked Injective ETF could mark a significant step toward broader integration of staking into mainstream investment products, strengthening the role of decentralized assets in the regulated financial system and driving wider acceptance.
