The native token behind the Injective blockchain could be getting an exchange-traded fund in the US, as Canary Capital created a trust in Delaware for a product that appears to offer staking exposure to the token.The Delaware Division of Corporations website shows the entity Canary Staked INJ ETF was formed on Monday, the asset managers apparent first step to offering a fund based around staked Injective (INJ).Crypto ETFs typically start with Delaware trustFiling for a trust in Delaware is usually the first step an ETF issuer takes before further filings are made with the Securities and Exchange Commission to launch an ETF for trading.Creating a Delaware trust doesnt necessarily mean a fund manager will follow up with an ETF, but multiple crypto-tracking ETFs started with the creation of a Delaware-based trust.A regulatory entry showing Canary Capitals staked INJ ETF trust.
Source: Delaware Division of CorporationsThere are currently no details on Canary Capitals seemingly planned INJ fund, but the company filed for an ETF in April to hold the Tron blockchains native token, TRX (TRX), and stake a portion of the tokens to generate yield, locking some of them up to support the blockchain to receive more tokens as a reward.Asset manager 21Shares launched an Injective exchange-traded product in Europe in July that similarly tracks the INJ token and captures staking yield for reinvestment.Canary Capital did not immediately respond to questions about its Delaware trust.Injective token gains on a possible ETFThe Injective token gained 3.7% over the last 24 hours amid Canary Capitals creation of the Delaware trust, with the blockchains X account sharing news of the trust on Monday.INJ has gained over the past day, continuing a modest rally from the past week.
Source: Cointelegraph Markets ProINJ is up over 10.5% on the week as DappRadar shows the blockchain has seen a slight uptick in transactions and users over that time.Related: BlackRocks Bitcoin fund blows past $70B in record pace for ETFsInjective markets itself as a layer-1 blockchain focused on artificial intelligence agents and tokenizing real-world assets and stocks, areas that are among some of the currently trendy applications for crypto.SEC concerned about crypto-staking ETFsFund issuers have filed for various novel crypto ETFs under the Trump administration, which has pledged to loosen crypto regulations.
Still, the SEC has raised concerns that crypto staking ETFs might not be legally allowed under securities laws.Last month, the regulators staff told REX Financial and Osprey Funds, which are looking to launch ETFs tracking Ether (ETH) and Solana (SOL) with staking, that the funds with their current structure might fail to meet the definition of an investment company, which is needed for them to list for trading.SECs letter on staking ETF filings raises concern over the structure of the ETFs.
Source: SECAnalysts are, however, optimistic that the companies and the SEC can overcome the legal hurdle.
REX lawyers say they can work it out, Bloomberg ETF analyst Eric Balchunas wrote in a May 31 X post.Magazine: Danger signs for Bitcoin as retail abandons it to institutions Sky Wee