Canary Capital is seeking Securities and Exchange Commission approval to launch the Canary Staked INJ ETF, a regulated investment vehicle designed to give US investors exposure to Injective's INJ token while generating staking rewards. The fund would trade on Nasdaq under the ticker INJC if approved, making it the first staked INJ ETF available in the United States.
In an S-1 amendment filed on October 23, 2026, Canary detailed the fund's operational structure. The ETF would hold INJ tokens and stake at least 90% of its assets through third-party providers. Rather than distributing staking rewards as cash, the fund plans to reinvest net rewards back into the fund, allowing the share price to track both INJ's price movement and accumulated staking rewards over time.
Fee and Operational Structure
The fund would charge an annual management fee of 1.10% and allocate 30% of staking rewards to cover fees. Canary plans to maintain enough unstaked liquidity to handle redemptions, which explains why the staking target is set at 90% rather than deploying all assets.
The operational design addresses a technical constraint specific to Injective's network: a 21-day unbonding period required between requesting to unstake tokens and receiving them back. This liquidity buffer helps Canary manage redemption requests during that waiting period.
Foundation Support and Initial Funding
The Injective Foundation has committed to an initial seed purchase of up to $15 million in ETF shares, paid in INJ tokens rather than dollars.
Risk Factors
The filing outlines several material risks. INJ's price can experience sharp swings, and the fund's value would move with it. Staking yield does not offset steep declines in the underlying token's price.
Network-level risks include penalties that proof-of-stake systems can impose on validators for misbehavior or downtime, which could reduce staked holdings. Since the fund relies on third-party staking providers, it inherits some of their operational risk.
The 21-day unbonding period creates liquidity pressure, particularly during waves of redemptions when the fund depends on its unstaked buffer to meet withdrawal requests.
Market Context
Regulated INJ exposure already exists internationally. In Europe, 21Shares launched its AINJ product in 2024.
Investors considering the proposed INJC will need to evaluate whether the 1.10% annual fee plus the 30% share of staking rewards justifies the operational simplicity and regulatory protections of an ETF structure compared to staking directly.
The fund remains a proposal pending SEC approval. The regulatory timeline for a decision has not been specified in the filing.
