The Chicago Board Options Exchange (Cboe) has made a significant move by filing to list a new exchange-traded fund built around Injective Protocol’s INJ token. This development marks another step forward in bringing cryptocurrency investment products to traditional markets, with the added twist of incorporating staking rewards directly into the fund structure.
Canary Capital, the firm behind this initiative, originally submitted its S-1 filing to the Securities and Exchange Commission back in July. With Cboe’s subsequent 19b-4 document submission later that month, the regulatory review process has officially kicked off, setting the stage for what could become the third staking-enabled cryptocurrency ETF in the United States.
The CBOE has filed to list the Canary $INJ Staked ETF in the U.S.
The @CBOE is the largest options exchange in the United States of America.
Injective's institutional adoption is accelerating like never before. pic.twitter.com/kWaDE1S1B0
— Injective 🥷 (@injective) July 29, 2025
Understanding the Dual-Income Structure
The proposed fund offers investors something beyond simple price exposure to INJ tokens. By incorporating staking mechanisms, the ETF creates a dual-income opportunity where shareholders can benefit from both market appreciation and passive yield generation. This approach mirrors decentralized finance strategies but packages them within a regulated investment vehicle.
Canary Capital intends to partner with an approved staking platform to manage the technical aspects of this process. This ensures regulatory compliance while maintaining transparency for investors. The staking rewards generated would flow back to ETF holders, creating an income stream similar to dividend-paying stocks but derived from blockchain validation activities.
Regulatory Landscape Opens New Doors
The timing for this filing couldn’t be better, given recent shifts in regulatory attitudes toward staking activities. In May, the SEC provided crucial guidance clarifying that staking operations don’t automatically qualify as securities offerings. This distinction removed a significant obstacle that had previously deterred financial institutions from developing staking-based investment products.
This regulatory clarity has triggered a surge in similar filings, with the Canary Injective ETF representing just one example of how traditional finance is adapting to incorporate blockchain-based yield strategies. The change signals a broader acceptance of cryptocurrency mechanisms within established financial frameworks.
The Path to Approval
Despite the encouraging regulatory environment, the ETF must still navigate the SEC’s comprehensive two-step approval process. The agency will review both Canary Capital’s S-1 application and Cboe’s exchange listing proposal. Typically, initial feedback arrives within 30 to 45 days after the filing acknowledgment, though the complete review can extend up to 240 days.
This timeline suggests that a final decision might not arrive until March of next year. During this period, regulators will scrutinize various aspects including investor protections, the mechanics of staking operations, and how yields will be distributed within the ETF structure.
The potential approval of this ETF could significantly impact Injective Protocol’s market dynamics. INJ tokens have experienced considerable volatility, reaching peaks of $52 before retreating to current levels around $14. Historical precedents, particularly Bitcoin’s performance following spot ETF approvals, suggest that enhanced accessibility through traditional investment vehicles can drive substantial demand.
The example of Bitcoin ETFs, which captured 75% of new investment during subsequent rallies, illustrates how these products can reshape market dynamics. For INJ holders and potential investors, the ETF approval could represent a catalyst for renewed interest and liquidity in the Injective ecosystem.
Market Outlook and Implications
The filing of a staked Injective ETF represents another incremental step in cryptocurrency’s integration with traditional finance, though market participants should temper expectations given the lengthy regulatory review process ahead. While the neutral sentiment suggests no immediate price catalyst, the development could gradually build positive momentum for INJ if similar staking ETF approvals continue to gain traction.
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