Canary Capital Bets Big on DeFi: Launches Delaware Shell for Injective (INJ) ETF Play

Wall Street's latest crypto flirtation takes shape as Canary Capital quietly files Delaware paperwork—because nothing screams 'innovation' like a tax-friendly corporate shell.

The move signals growing institutional appetite for DeFi's rising star, Injective, even as traditional finance scrambles to keep up with the sector's breakneck evolution.

While the ETF itself remains theoretical for now, the legal groundwork reveals hedge funds' mounting FOMO—and their trademark strategy of running regulatory arbitrage through America's most notorious corporate haven.

Injective may bring traditional finance to DeFi

The attempt to create an ETF based on Injective will potentially invite mainstream investments into the DeFi space. Injective has been one of the most active chains, claiming to be built specifically for scalable decentralized finance. 

In the past few months, Injective increased its daily active users, up to 48K daily.

The chain still pays out incentives to its validators, while generating around $40K in daily fees. Currently, Injective has negative daily earnings of over $1M, mostly due to incentives. However, INJ is not inflationary, and has a total supply of 100M tokens, with around 97M in circulation.

The attention for a wider selection of crypto assets suggests this cycle has not abandoned altcoins and tokens, but may continue to boost liquidity. 

Currently, Injective locks in $28.86M in total value, lagging behind other L1s. The platform is just building up its DeFi liquidity, tapping increased demand for lending and DEX swaps. 

Following the news of a potential ETF, INJ tokens expanded by 4.7% up to $13.56. INJ has rallied up to $40, and is considered undervalued compared to other L1 tokens. INJ open interest is near its higher range for the past three months, recovering to $68M. The overall consensus is that INJ lags due to the slow altcoin season, but may hold the potential for a higher price range and wider adoption.

INJ tokens are 100% unlocked, expecting no shocks of increased circulation. Staking also takes INJ off the market. INJ is listed on Binance, though most of its volumes are currently on DigiFinex.

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