The U.S. crypto ETF landscape may soon expand with an innovation. Cboe BZX Exchange has officially filed for a unique exchange-traded fund (ETF) that would provide exposure to Injective (INJ), a decentralized finance (DeFi) protocol known for its scalable, interoperable blockchain.
The proposed fund, introduced by Canary Capital Group LLC, is dubbed the Canary Staked INJ ETF and would be the first in the country to integrate native staking rewards directly into an ETF structure.
If approved, the fund would give both retail and institutional investors the ability to gain yield from INJ’s staking mechanism, without the need to manage digital wallets or participate in delegation themselves.
Combining Passive Yield with Traditional Markets
The introduction of staking into an ETF format is a significant development for the crypto investment space. Unlike traditional spot ETFs that only track price movements, the Canary Staked INJ ETF is designed to allow holders to benefit from the native staking yields earned through Injective’s proof-of-stake consensus model.
These yields, typically generated by helping secure the network, could be distributed back to ETF shareholders in a regulated framework.
According to industry observers, this added layer of yield could make the fund particularly attractive to long-term investors and institutions seeking crypto exposure with ongoing income potential.
Regulatory Momentum for Altcoin ETFs
The filing arrives during a period of heightened interest in altcoin-based ETFs. Recent regulatory clarity in the U.S. has paved the way for spot products tied to Bitcoin and Ethereum, and now attention is turning toward other major tokens like Solana, XRP, and Injective.
Canary’s ETF proposal follows closely behind the Invesco Galaxy Solana ETF filing, signaling a broader industry shift as asset managers race to secure early listings in the next generation of crypto funds.
While the SEC has historically taken a cautious stance on crypto-linked products, there are indications that attitudes are softening, particularly around proof-of-stake assets with clearly defined economic models.
Legal Framework Opens Door for Staking ETFs
In May, the SEC’s Division of Corporation Finance provided informal guidance suggesting that not all staking models fall under securities classification, particularly when staking does not involve promises of managerial efforts or centralized control.
This clarification has emboldened fund issuers to explore innovative structures like the one proposed for Injective.
The Canary ETF would use a third-party staking provider and operate under a regulated trust structure. If approved, the fund would trade on Cboe’s BZX platform under a format similar to existing commodity-based ETFs.
INJ Market Overview: Building Technical Strength
At the time of writing, Injective (INJ) is trading at approximately $14.83. Technical analysts are watching key support at $12.75 and resistance at $15.97, positioned near the upper range of the Bollinger Bands.
The token’s Relative Strength Index (RSI) currently reads above 60, suggesting growing bullish momentum.
Some projections suggest that if INJ breaks through near-term resistance, it could climb toward Fibonacci extension targets near $21.68, with potential for higher levels at $27.19 and $36.12 under strong market conditions.
This bullish outlook coincides with increased visibility stemming from the ETF filing.
A New Milestone for Crypto Fund Innovation
If approved, the Canary Staked INJ ETF would set a precedent in how digital assets, especially those with native yield components, are packaged for traditional markets.
The product could appeal to a wide range of investors, particularly those seeking exposure to DeFi infrastructure without the complexity of hands-on staking.
It also reflects growing confidence among asset managers that alternative crypto assets can achieve mainstream traction when offered through regulated financial vehicles.
The SEC is expected to begin its formal review process in the coming weeks, with a potential decision expected later this year. Approval would not only be a milestone for Injective but also a potential gateway for similar staking-integrated products tied to other major altcoins.
