Canary Doubles Down on Altcoin ETFs: Files to Launch Staking-Powered Injective Fund
Wall Street's crypto-curious are at it again—this time with a staking twist.
Canary just fired the latest shot in the altcoin ETF arms race, submitting paperwork for an Injective-focused fund that promises to deliver staking rewards. Because why settle for passive exposure when you can algorithmic your way to extra yield?
The move comes as TradFi firms scramble to repackage DeFi mechanics into SEC-friendly wrappers. Never mind that staking protocols change faster than a meme coin's Twitter bio—the prospect of 'regulated yield' might finally lure Boomer capital off the sidelines.
One hedge fund manager we spoke to quipped: 'Finally, a way to overcomplicate crypto investing while paying 2% in management fees.'
Broader ETF strategy
The INJ ETF is part of a larger push by Canary Capital, a firm led by former Valkyrie CIO Steven McClurg, to bring high-yield digital assets into traditional market structures.
Canary has already filed for ETFs tied to Solana, XRP, Hedera, Sui, and the Pudgy Penguins NFT project. Several of these applications include staking components, such as its Marinade-powered solana ETF, positioning the firm as a leader in staking-integrated investment products.
Canary established a Delaware statutory trust to support the INJ fund, mirroring its previous filings and signaling intent to meet the SEC’s evolving expectations around custodianship, validator selection, and yield treatment.
The proposal lands during crypto Week 2025, as lawmakers debate multiple bills that could define the legal framework for staking and other crypto-native activities. With SEC leadership now more open to structured yield products, Canary’s timing reflects a calculated bet on a regulatory shift.
Several issuers are looking to include staking in upcoming ETFs. Some have also filed to activate staking for spot ethereum ETFs that are already live, including BlackRock.
