Cboe Seeks Approval for Canary Capital’s Staked Injective ETF

The Chicago Board Options Exchange (Cboe) has filed an application to list a new exchange-traded fund (ETF) from Canary Capital, centered around the staking of Injective Protocol’s native token, INJ. This move signals growing momentum in the evolution of crypto-based ETFs, especially those integrating yield-generating features like staking.

If approved, the staked Injective ETF would become one of the first U.S.-listed ETFs to combine crypto exposure with staking rewards. The ETF is designed to track the price of INJ while simultaneously earning staking yield by participating in the Injective blockchain’s proof-of-stake validation process.

This development follows the recent introduction of similar staked ETF products for other leading cryptocurrencies. The launch of such funds marks a significant step in bridging traditional financial instruments with decentralized finance mechanisms. It reflects an increasing appetite among institutional investors for regulated crypto exposure that also provides passive income.

Cboe’s filing comes after regulatory shifts that have brought more clarity around staking activities. A recent regulatory green light recognized that staking, when properly structured, may not necessarily constitute securities activity. This has opened the door for more innovative financial products tied to blockchain ecosystems to be offered in the U.S.

Canary Capital’s Injective ETF will operate similarly to traditional ETFs but with the added benefit of capturing network rewards. Staking rewards will be reinvested into the fund or reflected in its performance, offering a more complete picture of the asset’s value proposition for investors.

Now that the filing has been submitted, the next phase involves review by the U.S. Securities and Exchange Commission (SEC). The agency will have an initial 30 to 45 days to respond, with the possibility of extending the review period up to 240 days. If approved, the ETF would likely launch in early 2026.

Injective Protocol is a blockchain built for high-speed, decentralized finance applications, particularly around derivatives trading and cross-chain interoperability. INJ, its native token, is used for governance, transaction fees, and staking. The token has seen increased attention as decentralized trading protocols gain traction globally.

By seeking to list a staked INJ ETF, Canary Capital is aiming to tap into a growing market segment of investors who want exposure to the performance of crypto assets, while also earning yield in a compliant and secure manner. This product could be particularly appealing to institutions that are restricted from holding raw crypto assets but are allowed to invest in ETFs.

The broader implications of this filing are significant. As more ETF providers and exchanges push for approval of staking-enabled funds, it may signal the beginning of a new chapter in crypto investment products. These ETFs offer a hybrid approach, combining the familiarity of traditional finance with the benefits of blockchain-native mechanisms.

Cboe’s latest filing demonstrates confidence in the evolving regulatory landscape and a belief that staking can be responsibly integrated into mainstream investment vehicles. If successful, the staked Injective ETF could become a blueprint for future offerings across a range of proof-of-stake crypto assets.