U.S. Regulation

Canary Capital Registers Staked Injective ETF in Delaware

The trust’s registration is just the beginning. To make the ETF officially recognized and listed, Canary Capital must file a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). This is a necessary procedure for obtaining approval from the SEC, which oversees securities offerings in the U.S. Once the Form S-1 is filed, the SEC will review the application before granting approval.

Additionally, Canary Capital will need to submit a Form 19b-4 filing. This filing will be made through the exchange where the ETF is intended to be listed. These filings are crucial steps toward bringing the ETF to market. As of now, the official filings are not yet available on the SEC website. Canary Capital has made prior filings with the SEC for other cryptocurrencies, including TRON (TRX), Sui (SUI), and PENGU.

These filings reflect the firm’s broader strategy of expanding its offerings in the crypto market by providing new investment opportunities tied to cryptocy assets. The Canary Staked Injective ETF aims to track the spot price of Injective (INJ), while also earning additional INJ tokens through staking. Staking is a process where holders of a cryptocy lock up their tokens to support network operations, such as transaction validation, in exchange for rewards.

In this case, investors in the ETF would gain exposure to both the market price of INJ and the staking rewards generated through the Injective blockchain just like the Solana ETF. This design offers convenience for investors since it allows investors to gain exposure to INJ without having to stake INJ directly. In doing this, this setup makes it easier for people who would like to participate through the staking rewards program but may not have the technical know how or interest in managing their own staking operations.

Canary Capital’s announcement comes amid other financial firms starting to offer similar crypto – backed investment products. In particular, 21Shares’s Injective Staking Exchange Traded Product (ETP), called AINJ, is a 100% physically backed product. While reinvesting staking rewards back into the ETP, AINJ tracks the performance of INJ.

This product is already on Euronext Amsterdam and Paris, enabling exposure to INJ and staking rewards for crypto investors. AINJ is asset backed by INJ tokens held in an institutionally grade custodian. Several prominent financial institutions including Interactive Brokers, Saxo Bank, Swissquote and eToro have supported this ETP.

Terron Gold

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