Key Takeaways:
- Canary Capital has formed a Delaware trust for a potential Injective (INJ) staking ETF.
- SEC concerns remain a major hurdle for crypto-staking ETF approvals in the U.S.
A possible Injective (INJ) staking ETF may be on the horizon as fund manager Canary Capital takes a key step toward launching the product in the U.S. The company has registered a Delaware trust named “Canary Staked INJ ETF,” signaling early-stage preparations for an exchange-traded fund tied to the Injective blockchain’s native token.
First Step Toward a Staked INJ ETF
Creating a Delaware trust is a common first move for asset managers looking to list an ETF. While this filing does not guarantee that an ETF will come to market, it mirrors the initial process seen in previous crypto ETF launches. The Delaware Division of Corporations confirmed the trust was formed on Monday.
Although Canary Capital has not released further details, this move follows its April filing for a Tron (TRX) staking ETF, which proposed holding and staking a portion of TRX tokens to generate on-chain yield. Similarly, a potential INJ staking ETF would allow investors to gain exposure to Injective while benefiting from staking rewards.
Also Read: Nasdaq Files for 21Shares Spot SUI ETF, Launching SEC Review Process
Injective, a layer-1 blockchain focused on AI agents and tokenized real-world assets, has seen a spike in activity. According to DappRadar, transactions and user activity on Injective have slightly increased over the past week. Following news of the trust filing, INJ gained 5.5% in the past 24 hours and is up more than 10.5% on the week.
SEC Scrutiny Looms Over Staking ETFs
Despite growing interest in staking-based ETFs, the U.S. Securities and Exchange Commission (SEC) has raised concerns over their legal structure. Last month, SEC staff warned REX Financial and Osprey Funds that their Ether and Solana staking ETF proposals might not meet the legal definition of an investment company.
Still, ETF analysts remain hopeful. Bloomberg’s Eric Balchunas noted that lawyers for REX believe a path forward is possible through negotiations with the SEC.
Update: SEC sent letter to REX last night saying it was concerned SEC improperly filed. REX lawyer says they can work it out. Feels a bit like the $PRIV situation. Issuers pushing envelope hard in effort to get first to mkt. Saturday scoop from @isabelletanlee https://t.co/6fnYf5Oo2V pic.twitter.com/NHTvOQyDsO
— Eric Balchunas (@EricBalchunas) May 31, 2025
Canary Capital has not yet commented on its newly formed INJ trust. However, the move adds to growing momentum for staking-focused investment products, even as regulatory uncertainty continues to cast a shadow.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
