Canary Files for Staked Injective ETF as Alternative coin Investments Gain Momentum
Canary Capital has returned with a new ETF initiative, this time focusing on Injective. The firm, based in New York, has submitted a filing to the SEC to create a fund that not only tracks INJ but also stakes it. The concept is straightforward. Rather than merely reflecting Injective’s price, the ETF would accumulate locking tokens rewards simultaneously. Investors can automatically earn yield, without requiring wallets, validators, or any crypto expertise.
Why Injective and Why Now
Injective operates as a fast, economical Layer 1 designed for financial applications and DeFi trading. Crucially, it utilizes proof of stake, allowing coin holders to receive rewards for contributing to the network’s safety. Canary aims to encapsulate that process within a single, regulated product that mimics a conventional ETF.
For those familiar with staked Ethereum products, this would adopt a comparable model. Investors would gain exposure to INJ’s price while reaping yield from earning yield, all within a package that simplifies management compared to handling it independently on-chain.
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Non-BTC crypto ETFs Are Heating Up
So far, the ETF crypto market has primarily concentrated on Bitcoin and ETH. However, asset managers are expanding their focus beyond these major cryptocurrencies. Canary has previously filed for funds linked to Solana, XRP, HBAR, SUI, and others. Injective distinguishes itself in that collection due to its strong emphasis on real-world finance and DeFi, and it already boasts functioning products and increasing usage.
Incorporating earning yield into the equation provides the fund with an additional advantage. It transforms into an investment that yields passive returns rather than remaining solely a speculative asset. This aspect is particularly attractive for investors seeking more than just price fluctuations.
Still Early, But Eyes Are on the Filing
The SEC filing is lacking some specifics at this stage. It’s unclear who will handle the locking tokens services or the proportion of INJ holdings that will actually be staked. However, the fundamental concept is sufficiently clear. If permitted, the fund would provide purchasers with a method to earn locking tokens rewards without needing to interact with crypto infrastructure.
This would mark a groundbreaking product in the U.S., although similar offerings are already operational in Europe. The success of Ethereum staking ETFs could instill greater confidence in regulators that these structures can function safely.
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Trading market Reaction and What to Expect
Injective’s price surged after the filing became public, increasing by over 25 percent to approximately $13.50. Trading volume also surged, and the project is now garnering heightened attention from institutional investors. Daily user levels remain around 71,000, with about $37 million locked within its DeFi ecosystem, yet momentum is on the rise.
Canary’s application is currently under SEC review. If it’s approved, it could represent a significant advancement toward wider alternative coin access through traditional markets. This fund would merge crypto yields with established financial systems, which is precisely what many investors have been anticipating.
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Key Takeaways
- Canary Capital has approached the SEC to launch the first-ever staked Injective ETF, combining exposure to INJ price with locking tokens benefits.
- The ETF would allow investors to gain yield from staking Injective without needing to manage wallets, validators, or interact directly with the distributed database.
- Injective is gaining traction in DeFi with its proof-of-stake framework and operational products, making it a compelling alternative for this fund.
- If sanctioned, the ETF would provide a new pathway for U.S. investors to engage in altcoin earning yield through regulated financial instruments.
- INJ price soared over 25 percent post-filing, reflecting strong crypto market interest in non-BTC crypto ETFs that extend beyond simple speculation.
The post Canary Files for Staked Injective ETF as Alternative coin Funds Pick Up Steam appeared first on 99Bitcoins.
