Canary continues filing spree with staked Injective ETF proposal
The fund group has submitted proposals in recent months for other funds that would hold litecoin, solana, XRP, HBAR, Sui and others
Injective CEO Eric Chen | Permissionless III by Mike Lawrence for Blockworks
Canary Capital proposed a product offering exposure to the native token of the Injective blockchain as it continues its crypto ETF filing spree.
The New York-based fund group’s latest ETF proposal comes as interest in staking-based products accelerates, Canary notes.
The Canary Staked INJ ETF would hold INJ directly and stake a portion of the assets it holds, according to a Thursday filing submitted to the SEC. The filing did not specify the amount it would stake or the staking provider.
The Injective layer-1 blockchain focuses on letting developers create financial applications. INJ’s market capitalization sits at roughly $1.3 billion — ranking it 89th largest among crypto assets, according to CoinGecko.
Founded by former Valkyrie CIO Steven McClurg, Canary has filed for a number of crypto ETFs in recent months — including those that would hold litecoin (LTC), solana (SOL), XRP, HBAR and Sui (SUI).
Canary also filed for a PENGU ETF — to hold both the Pudgy Penguins token and NFTs — as Blockworks’ Digital Asset Summit was taking place in March.
Executives noted at the time that while the SEC (under a new chair and with its crypto task force) is more willing to actively engage about products, the bevy of altcoin ETF filings isn’t necessarily a sign issuers are being told they have a good shot.
A person close to the altcoin ETF filings, who was granted anonymity to discuss non-public information, told Blockworks earlier this month that the SEC might wait to develop “generic listing standards” before greenlighting any more single-asset crypto ETFs.
Read more: Why crypto ETF launch timelines remain up in the air
Injective Labs, in a July 9 letter to SEC commissioner Hester Peirce, made several recommendations to the agency’s crypto task force.
Injective CEO Eric Chen told Blockworks this week that he’d be closely monitoring the crypto bills Congress is considering.
“With the CLARITY Act, basically what happens is we get to iterate extremely quickly because there’s no more [ambiguity] when it comes to the different profile design [or] different decentralization design that might create compliance issues,” Chen said.
Regularity clarity would help Injective form a “very predictable growth plan,” he added — particularly as the blockchain looks to bring liquidity and use cases to real-world assets within the Injective ecosystem.
“Because one of the biggest problems right now within the RWA ecosystem is that it’s pretty much a certificate of ownership that’s recorded on a blockchain with no mobility or real on-chain utility — or very limited, to that extent,” Chen said.
The breadth of assets to be democratized will be what “truly shines” as the RWA space evolves, the Injective CEO explained.
Chen noted: “Finding liquidity, congregating capital and finding an investor base on a very scarcely traded asset or an exotic asset and then being able to locate them and create capital formation all across the world … [is] the most exciting part.”
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
