Cboe BZX, one of the largest exchanges in the U.S., has filed for the creation of an Exchange Traded Fund (ETF) that will track the Injective token (INJ). This move could be significant for investors and regulators in the cryptocurrency space.
Cboe BZX ETF Filing
Cboe BZX has submitted an updated filing to the U.S. Securities and Exchange Commission (SEC) for an ETF that will track the native token of Injective (INJ). The filing was made on behalf of Canary Capital Group LLC and proposes the launch of the 'Canary staked INJ ETF,' which could have a considerable impact on the market.
ETF Conditions and Goals
Canary Capital aims to introduce a yield-bearing product tied to INJ. If the filing gets approved, the new ETF would allow investors to gain exposure to INJ while potentially providing benefits from its staking rewards. This marks one of the first serious attempts to create a staking-based altcoin ETF on traditional U.S. equity exchanges.
Positive Regulatory Climate for Crypto
This filing comes as the SEC reviews numerous new proposals for digital assets, including those related to Solana (SOL), Dogecoin (DOGE), and XRP. Previously, the SEC approved Bitcoin and Ethereum-based ETFs, establishing a precedent for broader adoption of digital assets in equity markets. In May, the SEC stated that certain staking activities may not be classified as securities offerings. This statement has opened the door for innovative models like the Canary staked Injective ETF.
The Canary staked Injective ETF application signifies a significant advancement towards altcoin-based and staking-enabled ETFs in the U.S. If approved by the SEC, it could pave the way for more innovative digital asset funds and expand investor options in the rapidly evolving crypto market.
