Canary Capital Files Injective Staking ETF Application

Canary Capital, a U.S.-based investment firm, filed an S-1 registration statement with the Securities and Exchange Commission (SEC) on Thursday to launch an exchange-traded fund (ETF) based on the Injective (INJ) token, generating revenue through staking. According to the filing, the main objective of the ETF is to accrue staking rewards by validating transactions on the Injective blockchain using an approved staking platform.

Injective Protocol is a layer-1 blockchain network focused on decentralized finance (DeFi) applications, with INJ serving as its governance, utility, and staking token. Canary Capital established a Delaware trust for this ETF in June, signaling plans to create an investment vehicle with exposure to the Injective altcoin.

Canary Capital’s filing reflects a broader trend of convergence between traditional finance and DeFi, accelerated by SEC guidance clarifying that staking rewards are treated as income rather than securities transactions, allowing fund managers to act as validators through delegated staking.