SEC Opens Public Commentary on Proposed Staked Injective ETF
The U.S. Securities and Exchange Commission (SEC) has initiated a 21-day window for public commentary regarding Canary Capital’s proposed staked Injective ETF. This opportunity for input was announced in a filing on Monday. Following this period, the SEC has a maximum of 90 days to decide on the subsequent steps concerning the fund’s application.
Details of the Proposed ETF
The proposed ETF aims to track the native token of the Injective blockchain while incorporating staking rewards. If approved, it would be listed on the Cboe BZX Exchange. Canary Capital originally established a trust framework in Delaware back in June, a standard procedure that typically precedes an ETF filing. Notably, similar products have already been introduced in international markets, such as the 21Shares’ Injective Staking Exchange-Traded Product in Europe.
Recent Developments from Canary Capital
This news comes shortly after Canary Capital submitted an application for its “Made in America” crypto ETF, which focuses on U.S.-based assets like Uniswap (UNI), Chainlink (LINK), Solana (SOL), along with Injective (INJ), and emphasizes staking for qualifying proof-of-stake tokens. Additionally, the firm has taken steps towards launching a spot Trump (TRUMP) ETF, having filed its S-1 following a trust registration earlier in August.
Significance of the Timing
The timing of the staked Injective ETF proposal is significant, as there is a growing interest in staking ETFs among U.S. investors, particularly following the recent approval of the first Solana staking ETF, managed by REX-Osprey. This approval illustrates a shift in the SEC’s perspective on staking-related investment vehicles, which has been influenced by a more lenient regulatory approach.
In recent months, the SEC has indicated that many features related to proof-of-stake and specific liquid staking operations do not classify as securities, thereby easing the path for issuers looking to launch staking-related financial products.
