Canary’s Proposed Injective ETF May Reserve Tokens for Redemptions

Canary Capital’s Sept. 24 preliminary filing leaves staking-fee percentages blank for its proposed Injective (INJ) ETF. The fund’s daily net asset value (NAV) would reflect staking rewards at 4 p.m. ET (20:00 UTC on Sept. 24), or as soon as practicable afterward.

The sponsor expects to stake at least 90% of the fund’s INJ under normal conditions and may reserve tokens for redemptions and expenses. The filing sets no fixed reserve percentage. The plan builds on Canary’s earlier proposed staking-reward structure.

A reserve could help manage the 21-day unbonding period for undelegated INJ. During that period, the tokens are inaccessible and earn no rewards.

Net staking rewards generally would be restaked, except for amounts reserved or used for redemptions, expenses or other protections. The fund would not pay cash staking rewards to shareholders. Staking fees would be shared among the provider, sponsor and custodian, but the filing leaves the fee percentages blank.

Rewards are not guaranteed, and additional INJ holdings would not shield the fund from changes in the token’s market price. The filing is preliminary; shares cannot be sold until the registration statement becomes effective.