Canary Capital has submitted an S-1 application for a staked INJ exchange-traded fund (ETF) with the SEC. The filing is driven by SEC guidance that classifies staking rewards as income, allowing asset managers to engage in delegated staking for blockchain tokens. The INJ token powers the Injective Protocol, a layer-1 blockchain dedicated to decentralized finance (DeFi). The fund aims to earn staking rewards via validation services on an approved platform. This ETF filing is part of a growing trend in the U.S. involving altcoin ETFs and reflects increasing interest in DeFi, particularly after the SEC's ruling on staking rewards. This convergence of traditional finance (TradFi) and decentralized finance (DeFi) could potentially provide retail investors with access to investments previously limited to accredited investors. However, concerns about institutions affecting the crypto market, seen as profit-driven and not aligned with the fundamental ethos of crypto, have been expressed by some within the community.

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