Canary Capital Forms Delaware Trust For Potential Injective (INJ) ETF

Canary Capital Forms Delaware Trust for Potential Injective (INJ) Staking ETF Amid Regulatory Uncertainty

  • Canary Capital has established a trust in Delaware for a potential exchange-traded fund (ETF) based on the Injective (INJ) token.
  • The move is often the first regulatory step toward launching a crypto ETF in the United States.
  • INJ token prices rose after the news, with more than 10.5% weekly growth and increased user and transaction activity.
  • The U.S. Securities and Exchange Commission (SEC) has raised concerns about the legal structure of crypto staking ETFs.
  • Similar products tracking Injective and staking have already launched in Europe, but the U.S. regulatory environment remains uncertain.

Canary Capital has formed a trust in Delaware called “Canary Staked INJ ETF,” signaling a possible step toward launching a new exchange-traded fund (ETF) tied to the staking of the Injective (INJ) token in the U.S. The entity’s formation appeared on the Delaware Division of Corporations website on Monday.

- Advertisement -

This step matches the typical process used when proposing a crypto ETF in the U.S., where creating a Delaware trust usually comes before making submissions to the Securities and Exchange Commission (SEC). While the trust formation does not guarantee a new ETF will launch, several crypto-related ETFs have started with similar registrations.

Canary Capital previously filed for an ETF based on the Tron blockchain’s native token (TRX) in April. That product aims to hold, stake, and generate yield by locking up part of its assets to receive additional token rewards. According to DappRadar, Injective’s network has seen a moderate increase in activity with more transactions and users over the past week.

21Shares, an asset management firm, launched an Injective-product in Europe that also tracks the INJ token and collects staking rewards for reinvestment. The Injective token gained 3.7% in the past 24 hours and has increased over 10.5% in the last week, coinciding with reports of the new trust and positive sentiment on the blockchain’s official X platform account.

The SEC has shown concern about ETF funds involving crypto staking, questioning whether these structures fit the legal definition needed to list for trading. Last month, SEC staff stated that proposals for Ether (ETH) and Solana (SOL) staking ETFs by REX Financial and Osprey Funds might not qualify under current rules. “REX lawyers say they can work it out,” wrote Bloomberg ETF analyst Eric Balchunas on his X account.

Injective positions itself as a layer-1 blockchain focused on Artificial Intelligence and tokenized real-world assets and stocks. The U.S. market awaits further updates as regulatory discussions continue on whether staking-based crypto ETFs will receive approval.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Prosecutors Weigh Charges Against Dragonfly Over Tornado Cash Ties

U.S. prosecutors are considering charges against Dragonfly Capital over its investment in Tornado Cash’s...

Prosecutors Weigh Charges Against Dragonfly Capital Over Tornado Cash

Prosecutors in New York said they may file criminal charges against employees at Dragonfly...

US, UK Employees Risk Data Leaks Using Chinese GenAI Tools, Study Finds

Employee use of Chinese generative AI tools in the US and UK is widespread...

Chris Larsen Sells $175M XRP, Sparks Centralization Concerns

Chris Larsen, Ripple's co-founder, transferred $175 million in XRP during a recent price rally,...

GENIUS Act Spurs Debate Over Stablecoin Redemption and Run Risks

The U.S. GENIUS Act on stablecoins has raised concerns about the safety and redemption...

Must Read

Top 10 BEST Crypto Trading Books for New Traders

If you're thinking of diving into the crypto trading space, acquiring solid knowledge isn't just recommended - it's essential to protect your investment.Learning...