Canary Doubles Down: Staked Injective ETF Proposal Fuels Crypto ETF Frenzy

Another day, another crypto ETF filing—this time, Canary's betting big on staked Injective. Because what the world needs now is more ways to trade derivatives of derivatives.

Wall Street's Latest Crypto Craze

Canary's filing spree hits warp speed with a staked Injective ETF play. Because why settle for regular crypto exposure when you can layer staking rewards on top? Traders cheer; purists groan.

The Mechanics Behind the Madness

The proposal would let investors gain exposure to INJ staking yields without the hassle of running nodes. Translation: passive income for the lazy, fees for the middlemen.

Regulators Eyeing the Fine Print

SEC hasn't greenlit a spot crypto ETF yet, but that won't stop the flood of creative filings. Somewhere in DC, a bureaucrat just Googled 'proof-of-stake.'

Bottom Line: The crypto ETF gold rush shows no signs of slowing—even if half these products will be ghost towns by 2026. But hey, those management fees won't collect themselves.

Founded by former Valkyrie CIO Steven McClurg, Canary has filed for a number of crypto ETFs in recent months — including those that would hold Litecoin (LTC), solana (SOL), XRP, HBAR and Sui (SUI). 

Canary also filed for a PENGU ETF — to hold both the Pudgy Penguins token and NFTs  — as Blockworks’ Digital Asset Summit was taking place in March.

Executives noted at the time that while the SEC (under a new chair and with its crypto task force) is more willing to actively engage about products, the bevy of altcoin ETF filings isn’t necessarily a sign issuers are being told they have a good shot.   

A person close to the altcoin ETF filings, who was granted anonymity to discuss non-public information, told Blockworks earlier this month that the SEC might wait to develop “generic listing standards” before greenlighting any more single-asset crypto ETFs.

Why crypto ETF launch timelines remain up in the air

Injective Labs, in a July 9 letter to SEC commissioner Hester Peirce, made several recommendations to the agency’s crypto task force.

Injective CEO Eric Chen told Blockworks this week that he’d be closely monitoring the crypto bills Congress is considering. 

“With the CLARITY Act, basically what happens is we get to iterate extremely quickly because there’s no more [ambiguity] when it comes to the different profile design [or] different decentralization design that might create compliance issues,” Chen said.  

Regularity clarity would help Injective FORM a “very predictable growth plan,” he added — particularly as the blockchain looks to bring liquidity and use cases to real-world assets within the Injective ecosystem.

“Because one of the biggest problems right now within the RWA ecosystem is that it’s pretty much a certificate of ownership that’s recorded on a blockchain with no mobility or real on-chain utility — or very limited, to that extent,” Chen said. 

The breadth of assets to be democratized will be what “truly shines” as the RWA space evolves, the Injective CEO explained. 

Chen noted: “Finding liquidity, congregating capital and finding an investor base on a very scarcely traded asset or an exotic asset and then being able to locate them and create capital formation all across the world … [is] the most exciting part.”

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