Canary’s Proposed Injective ETF Plans to Stake at Least 90% of INJ

Canary Capital’s proposed Injective exchange-traded fund would stake at least 90% of its Injective (INJ) holdings under normal conditions, with shares expected to trade on Cboe BZX Exchange under ticker INJS if required approvals are granted.

The fund would hold INJ directly and delegate tokens to validators on the Injective network to seek staking rewards. It would leave some tokens unstaked for redemptions, expenses and other protections, and receive only part of the rewards after staking fees.

The proposal has not been approved, and the registration statement does not establish that trading has begun. A separate Securities and Exchange Commission proceeding concerns Cboe BZX’s proposed rule change to list and trade the shares.

The staking structure also involves liquidity considerations. Canary’s policy takes Injective’s unbonding characteristics and the timing of share redemptions into account. The trust had not entered a credit facility as of the prospectus date. BitGo Bank & Trust, N.A. is named as custodian.

The shares would not be registered under the Investment Company Act of 1940, so shareholders would not receive protections provided to funds registered under that law. The proposed fund also carries staking risks, including potential validator penalties.

Canary amended its proposed staked Injective ETF filing on June 25, outlining exposure to INJ and staking rewards subject to regulatory and exchange approval. The latest proposal continues that effort with a plan to stake at least 90% of holdings under normal conditions. Read earlier coverage of Canary’s proposed staked Injective ETF.