According to Cointelegraph, the native token of the Injective blockchain may soon be featured in a U.S. exchange-traded fund (ETF) as Canary Capital has established a trust in Delaware. This trust, named 'Canary Staked INJ ETF,' appears to be the asset manager's initial move towards offering a fund that provides staking exposure to the Injective (INJ) token. The formation of a Delaware trust is typically the first step for ETF issuers before proceeding with further filings to the Securities and Exchange Commission (SEC) for trading approval. While creating a Delaware trust does not guarantee the launch of an ETF, it is a common starting point for many crypto-tracking ETFs.
Currently, there are no specific details available about Canary Capital's planned INJ fund. However, the company previously filed for an ETF in April to hold the Tron blockchain's native token, TRX, and stake a portion of the tokens to generate yield. This involves locking some tokens to support the blockchain and receiving additional tokens as a reward. In Europe, asset manager 21Shares launched an Injective exchange-traded product in July, which similarly tracks the INJ token and captures staking yield for reinvestment. Canary Capital has not yet responded to inquiries regarding its Delaware trust.
The news of Canary Capital's creation of the Delaware trust has positively impacted the Injective token, which saw a 3.7% increase over the last 24 hours. The blockchain's X account shared the news on Monday, contributing to the token's upward trend. Over the past week, INJ has gained more than 10.5%, with DappRadar indicating a slight increase in transactions and users. Injective markets itself as a layer-1 blockchain focused on artificial intelligence agents and tokenizing real-world assets and stocks, which are currently popular applications in the crypto space.
Under the administration of U.S. President Donald Trump, fund issuers have filed for various innovative crypto ETFs, with the administration promising to ease crypto regulations. However, the SEC has expressed concerns about the legality of crypto staking ETFs under securities laws. Last month, the SEC staff informed REX Financial and Osprey Funds, which are planning to launch ETFs tracking Ether (ETH) and Solana (SOL) with staking, that their current structure might not meet the definition of an investment company required for trading. Despite these concerns, analysts remain optimistic that the companies and the SEC can resolve the legal challenges. Bloomberg ETF analyst Eric Balchunas noted in a May 31 X post that REX lawyers are confident in finding a solution.
