US SEC Invites Public Feedback on Proposed Staked Injective ETF Listing

TLDR

• SEC invites public comment on the proposed Staked Injective ETF for 21 days.

• Canary’s ETF aims to track INJ token price and staking yields via the Cboe BZX Exchange.

• The ETF would be the first of its kind for Injective, broadening institutional access.

• The review comes amid growing momentum for crypto ETFs in the U.S. market.

The U.S. Securities and Exchange Commission (SEC) has opened a public comment period on the proposed Canary Staked Injective (INJ) ETF. This proposal, which aims to track the price of the INJ token and its staking yields, would mark a significant addition to the expanding range of crypto-linked exchange-traded funds (ETFs). The SEC’s move to invite public feedback underscores the growing interest in crypto ETFs as institutional investors continue to seek exposure to digital assets.

Canary Capital, the firm behind the proposal, has filed for approval to list this ETF on the Cboe BZX Exchange. The proposed product would be the first staked INJ ETF in the U.S. and could open up broader institutional access to the Injective ecosystem. Canary’s filing suggests that the ETF would offer exposure not only to the token price but also to staking yields, further enhancing its appeal to long-term investors.

Canary’s Proposal for the Staked Injective ETF

Canary’s ETF proposal, filed in July 2025, seeks to track the performance of Injective (INJ) and its staking rewards. The proposal claims that INJ’s market resilience, with a market capitalization exceeding $1.4 billion, makes it a strong candidate for such a product.

Canary also pointed out that INJ’s trading structure is geographically diverse and continuous, making it less susceptible to market manipulation compared to traditional equity or futures markets.

In the filing, Canary argued that the staked ETF would be beneficial for institutional investors, offering them a means to participate in the growing Injective ecosystem while potentially benefiting from staking rewards. The company has positioned the proposal as a way to bring the broader crypto market closer to traditional financial institutions, making digital assets like INJ more accessible through an ETF structure.

Public Comment and SEC Review Process

The SEC has set a 21-day window for public comments on the Staked Injective ETF proposal, ending in mid-September. Following this period, the SEC will have up to 90 days to issue its decision on whether to approve, deny, or extend the review of the ETF.

This extended review timeline is consistent with the SEC’s approach to similar crypto-based proposals, allowing ample time for consideration of the regulatory and market implications of such products.

This review period comes at a time when crypto-linked ETFs are gaining momentum in the U.S., with recent approvals for Bitcoin and Ethereum ETFs setting precedents. However, the SEC has faced challenges in regulating these products, with concerns about market manipulation and investor protection continuing to be key factors in its decision-making process.

Potential Impact on the Injective Ecosystem

If the Staked Injective ETF receives SEC approval, it would significantly expand the accessibility of INJ for institutional investors. The ability to gain exposure to the token and its staking yields through an ETF structure would attract more traditional financial institutions to the Injective ecosystem. This could lead to increased liquidity and a higher profile for Injective, which has already seen notable growth in market capitalization.

Canary’s proposal aims to further solidify Injective’s position in the broader crypto market, positioning the asset as a viable option for long-term investors seeking staking rewards. Should the SEC approve the ETF, it would represent a key step in the institutionalization of crypto assets in the U.S.

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