CBOE Files to List Canary Capital's Staked Injective ETF Amid Regulatory Support

According to Cointelegraph, the Chicago Board Options Exchange (CBOE) has submitted a filing to list shares of Canary Capital’s proposed staked Injective exchange-traded fund (ETF). This move marks another step in the expansion of regulated crypto investment products in the United States. The CBOE's 19b-4 filing was submitted shortly after Canary Capital filed an S-1 application for a staked Injective (INJ) token fund with the U.S. Securities and Exchange Commission (SEC). The fund aims to generate staking rewards by providing validation services through an approved staking platform. If approved, it would become the third staked altcoin ETF, following the staked Solana (SOL) and staked Ether (ETH) ETFs approved on June 30. The filing occurs in a regulatory environment that has become more favorable under the administration of U.S. President Donald Trump, who has supported innovation in crypto-based investment vehicles. The SEC has not yet formally acknowledged the ETF filings from Canary Capital and the CBOE. Once acknowledged, the SEC will set key deadlines for an initial response, typically between 30 and 45 days, or early September. However, the complete review period can extend up to 240 days, meaning the final decision on the staked INJ ETF may not arrive until March 2026. In a significant decision in May, the SEC ruled that staking does not violate securities laws, a move seen as a major step forward for the U.S. cryptocurrency industry. Alison Mangiero, head of staking policy at the Crypto Council for Innovation, noted that the SEC's recognition of staking as a core component of modern blockchains, rather than an investment contract, provides critical clarity. If approved, Canary Capital’s ETF would offer traditional investors exposure to the Injective protocol’s governance token, potentially enhancing liquidity and visibility for the asset. The ETF inflows could help the utility token regain its previous all-time high of $52, recorded over a year ago on March 14, 2024. However, the token remains over 71% below its previous peak, trading at $15.10 at the time of writing. For Bitcoin (BTC), ETF inflows accounted for about 75% of new investment when its price rose above $50,000 in February 2024 following the approval of the first U.S. spot BTC ETFs. In contrast, the market response to Ethereum’s spot ETF has been more subdued, with Ether’s price falling over 38% in the two weeks after the spot ETFs debuted for trading in the U.S., before beginning to recover. The outflows from Grayscale’s Ether ETF (ETHE) have added significant selling pressure for the world’s second-largest cryptocurrency, with the fund realizing over $4.3 billion worth of net negative outflows to date.