Canary Capital Files for Staked Injective ETF, Will INJ Price Recover From 30% Monthly Drop?

In the latest move, asset manager Canary Capital has submitted a filing to the U.S. Securities and Exchange Commission (SEC) to bring a staked Injective ETF to the market.

As a result, investors would get a regulated exposure to the INJ INJ $4.85 24h volatility: 2.8% Market cap: $484.80 M Vol. 24h: $58.72 M cryptocurrency along with the option to earn staking rewards.

Canary Capital Submits S-1 to U.S. SEC for Injective ETF

As per the latest regulatory filing, asset manager Canary submitted its S-1 registration statement with the U.S. Securities and Exchange Commission for its proposed staked Injective (INJ) exchange-traded fund.

If approved, the Canary Staked Injective ETF would list on Cboe and provide investors with exposure to the spot price of INJ crypto.

The ETF will also offer investors the opportunity to earn additional yields through staking rewards. It joins several other crypto ETFs currently awaiting US SEC approval for 2026.

The fund structure allows the sponsor to stake all INJ tokens held by the trust through one or more staking providers. However, they haven’t announced any specific staking partners so far.

The filing outlines key operational details of the product. U.S. Bancorp Fund Services has been appointed as the transfer agent and cash custodian.

At the same time, the BitGo Trust Company will serve as the digital asset custodian. The ETF will track the performance of Injective based on the INJ-USD CCIXber Reference Rate price index.

Under the proposed structure, shares of the ETF will be created and redeemed in blocks of 10,000 shares.

Canary also disclosed that Paralel Distributors LLC will act as the marketing agent for the product.

Growth of the Overall Injective Ecosystem

The Injective ecosystem has seen some solid growth in recent years. Transaction activity across the Injective ecosystem has surged sharply over the past three years.

In 2023, weekly transaction counts were largely confined to the 0-1,000 range. That figure has since climbed dramatically and is now approaching 1 million transactions per week.

The data highlights the expanding usage of the Injective ecosystem beyond basic token transfers.

Transaction activity spans decentralized exchanges, minting, staking, derivatives, swaps, NFT interactions, and other on-chain operations

The protocol is also catering to key developments in the tokenization of real-world assets.

Injective’s Korea Lead, Andrew (@AndKrypto), spoke on Dec. 18 at Hashed’s Open Research Forum, where he outlined how a $10 billion mortgage portfolio from PAPL pineapple is being brought on-chain via Injective.

He also discussed Injective’s role in advancing real-world asset (RWA) adoption. This includes exploring new use cases like on-chain trading of pre-IPO stocks.

Despite these developments, INJ continues to face selling pressure, with its price correcting nearly 30% over the past month.

Will the INJ Price Recover From Here?

At the time of writing, INJ’s price is trading 5.6% down at $4.58. On the daily chart, the asset is trading below its 50-day, 100-day, and 200-day moving averages, reflecting continued short-term weakness.

At the same time, the Relative Strength Index (RSI) has fallen to 30.67. It shows oversold conditions and hints at a potential for a near-term technical rebound.

INJ’s price. | Source TradingView

Traders might consider entering near the $4.50 level, with an upside target around $5.50 if prices reclaim key resistance. For a sustained recovery, however, trading volumes need to increase.

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