Key Insights:

• Cboe has submitted a proposal to list a staked Injective (INJ) ETF, managed by Canary Capital.
• This would be the third staking-enabled ETF after Ethereum and Solana.
• The ETF offers dual income: exposure to INJ’s price, as well as staking rewards via a compliant platform.
  

The Chicago Board Options Exchange (Cboe) has taken another foray into the crypto market. This is by filing to list a new ETF centered on the Injective Protocol’s INJ token. 

What makes this product interesting is its inclusion of staking rewards, which allows investors to earn passive income as well as market exposure.

The proposal comes in partnership with Canary Capital, a firm that submitted its S-1 filing with the U.S. Securities and Exchange Commission (SEC) on July 17. After the Cboe’s filing of a 19b-4 document on July 29, the SEC has now officially begun a formal review process for listing the ETF on an exchange.

How the Canary Staked Injective ETF Works

It is worth mentioning that if approved, this would become the third staked altcoin ETF in the United States, after greenlights from similar funds for Solana and Ethereum earlier this year.

🚨INJ joins the staking ETF race!

Cboe just filed with the SEC to list a staked Injective (INJ) ETF, following SOL and ETH staked ETFs.

BULLISH for INJ?🚀 pic.twitter.com/dl0NOloA4A

— Coin Bureau (@coinbureau) July 29, 2025

The proposed ETF introduces a dual-income investment structure. Investors would hold shares tied to INJ, the governance token of the Injective Protocol. However, more than tracking the token’s market price, the ETF will also allow investors to earn rewards through staking.

Canary Capital plans to use an “approved staking platform” to handle these technical operations, which makes sure that it has regulatory compliance and transparency. 

The rewards from staking will be returned to investors, effectively mimicking the yield-generating features of defi: except in a more regulated investment wrapper.

This hybrid model blends TradFi tools with DeFi rewards and opens the door for more income strategies within the ETF market.

Regulatory Climate Is Shifting

The timing of the ETF filing works well with recent regulatory changes that favor staking-enabled financial products. In May, the SEC issued updated guidance, which clarified that staking does not necessarily constitute a securities offering. 

This clarity removed a major hurdle that had discouraged many firms from pursuing staking-based investment products.

The decision has encouraged a wave of new filings for staked ETFs. The Canary Injective ETF is part of that wave, and a change in how digital assets are integrated into legacy financial systems is underway.

SEC Review Timeline and What to Expect

Despite the favorable environment, the ETF is still subject to the SEC’s two-step approval process. First, the S-1 application filed by Canary Capital must be reviewed. Then, the Cboe’s 19b-4 filing initiates the process to approve the ETF’s listing.

The SEC generally announces an initial decision within 30 to 45 days of acknowledging the filing. However, the entire process can take up to 240 days, which means that a final verdict could come as late as March next year.

Until then, the market will be watching, especially as the agency continues to assess investor protection, staking operations and yield distribution in ETF structures.

Is This Bullish For Injective Price?

If approved, the ETF could provide a major boost to Injective Protocol’s native token, INJ. The token hit an all-time high of $52 in March of last year, but has since dropped by over 70% and is currently trading around $14.

An ETF inclusion would improve liquidity, expand investor access and even increase demand. For example, Bitcoin’s price surged past $50,000 in February of last year, shortly after the first U.S. spot Bitcoin ETFs were approved.

Interestingly, ETF inflows accounted for 75% of new investment during the rally.

If history is any indication, INJ could be headed for a massive price boost if all goes as planned.