Canary Capital Takes First Step Toward Injective ETF with Delaware Trust Setup

Canary Capital has taken an initial step toward launching an ETF by establishing a Delaware trust for a fund that plans to stake the Injective token. The formation of the trust, named "Canary Staked INJ ETF," was registered on the Delaware Division of Corporations website. This move is typically the first step for crypto ETF providers before submitting further filings to the SEC to officially launch their funds. Although creating a Delaware trust does not guarantee an ETF will follow, many crypto-tracking ETFs have started this way.

Currently, there are no detailed plans announced for Canary Capital’s INJ fund, but the company previously filed an application in April for an ETF holding the Tron blockchain’s native token, TRX, with staking to generate yield and support the blockchain. Similar products have been launched in Europe, such as 21Shares’ Injective ETF, which tracks the INJ token and captures staking yields for reinvestment.

Following the trust’s creation, the Injective token experienced a 3.7% increase over the past 24 hours and a 10.5% rise over the past week, reflecting market optimism. Injective is a layer-1 blockchain focused on AI agents and tokenizing real-world assets and stocks, aligning with current crypto trends.

However, the SEC has expressed concerns over crypto-staking ETFs, suggesting that current structures may not comply with securities laws. Previous filings for similar funds, such as Ether and Solana staking ETFs, have been flagged for potentially not meeting the legal definition of an investment company, which is necessary for trading approval.