The SEC has launched a comment period! Canary's staking Injective ETF may become one of the first staking encryption funds in the US.

The U.S. Securities and Exchange Commission (SEC) is accelerating its review of cryptocurrency staking ETFs. According to documents submitted on Monday, the SEC has initiated a 21-day public comment period for the Canary Staked INJ ETF and will decide whether to approve the product within a maximum of 90 days. If approved, this will become one of the first exchange-traded funds in the U.S. market to track Injective (INJ) and combine staking yields.

Canary Staked INJ ETF: stake + spot tracking

Proposal Background: Canary submitted an application last month to launch a staking Injective ETF that tracks the price performance of the Injective blockchain native asset INJ, while incorporating staking returns into the fund's returns.

Exchange Listing: If approved, the ETF will be traded on the Chicago Board Options Exchange (Cboe) BZX.

Market Capitalization Basis: Cboe noted in a document on August 11 that the market capitalization of INJ has exceeded 1.4 billion dollars, and the trading distribution is geographically diverse with high liquidity, reducing the possibility of price manipulation.

Cboe stated: "The geographical diversity and continuity of the INJ market make price manipulation difficult and costly, and in many cases, it is even harder to manipulate than the stock, fixed income, and commodity futures markets."

staking encryption ETF competition heats up

Under a more friendly regulatory environment during President Trump's second term, the U.S. market has welcomed a wave of encryption ETF proposals, covering a variety of assets from Dogecoin (DOGE) to Solana (SOL).

VanEck: Last week submitted a JitoSOL ETF application, tracking the liquidity staking token (LST) JitoSOL issued by Jito Network.

REX-Osprey: Announced the launch of the Solana stake ETF in July, which also integrates the staking reward mechanism of JitoSOL.

SEC's Stance on Staking is Gradually Clarifying

In recent months, the SEC has released more regulatory signals regarding Proof of Stake (PoS) and liquidity staking activities:

May statement: Most PoS functions do not fall under SEC regulation.

Subsequent clarification: Some liquidity staking activities do not involve the definition of securities, meaning there is compliance space for staking ETFs.

Approval Timeline and Other Delay Cases

Comment Period: The public comment period for the Canary Staked INJ ETF is 21 days, and the SEC has a maximum of 90 days to make a decision.

Delay case: On the same day, the SEC postponed the approval of the WisdomTree XRP ETF to October 24, which is a common occurrence in the ETF review process.

Conclusion and Market Impact

If the Canary Staked INJ ETF is approved, it will become one of the first crypto ETFs in the US market that combines staking rewards with spot tracking, marking a milestone for the Injective ecosystem and the mainstreaming of staking assets. As the SEC's stance on Staking becomes clearer, more staking ETFs are expected to enter the market in the future, driving deeper integration between crypto assets and traditional finance.