Canary’s INJ ETF Goes Live on Nasdaq With Staking Rewards

Canary Capital’s Canary Staked INJ ETF has begun trading on Nasdaq under the ticker INJC, giving investors a new way to gain exposure to Injective’s native token through traditional brokerage accounts. The fund also aims to generate additional INJ through staking, with net rewards reflected in its net asset value (NAV).

The ETF began trading on November 5. It holds INJ and participates in Injective’s proof-of-stake validation process to earn additional tokens. Rather than paying staking rewards directly to shareholders, the fund incorporates them into its NAV.

This means investors can gain exposure to both INJ’s market performance and potential staking rewards without managing crypto wallets or validators themselves. However, staking returns are not guaranteed, and the fund’s value remains exposed to INJ price movements.

INJC adds a staking feature to traditional INJ exposure

The ETF is designed to track the price of INJ while earning additional tokens through staking. Under normal market conditions, the fund expects to stake at least 90% of its INJ holdings, according to its registration documents.

Canary lists BitGo Bank & Trust as its digital asset custodian and Luganodes as its staking provider. The fund also carries an annual sponsor fee of 1.10%.

The staking structure introduces additional considerations. Rewards can fluctuate, and staking involves risks such as validator penalties and delays when withdrawing staked assets. Investors should also account for the fund’s fees when assessing whether staking rewards add value.

The launch follows Nasdaq’s November 4 notice confirming that INJC would begin listing the following day. Altcoin Buzz previously reported on the ETF’s listing approval and its plan to stake at least 90% of its INJ holdings.

Injective expands its institutional tokenization infrastructure

The ETF launch comes as Injective builds out its position in tokenized financial markets.

In August, Injective Institutional Services, an affiliate of the network, became registered with the US Securities and Exchange Commission as a transfer agent. Transfer agents maintain official records of securities ownership and process changes when securities are transferred.

The registration adds a regulated recordkeeping function to Injective’s broader tokenization strategy. It could support institutions seeking to issue and manage tokenized securities while maintaining the ownership records required under US securities rules.

Injective CEO Eric Chen recently described transfer agent registration as an early step toward a larger role in financial market infrastructure. He said the network could eventually support clearing and settlement functions for institutions.

Injective says its network has tokenized more than $1 billion in assets. It also reported processing over 3.13 billion transactions and permanently burning more than 7.27 million INJ through its monthly token buybacks as of October 22.

More INJ ETF proposals are in the pipeline

Canary’s product is not the only proposed exchange-traded fund linked to Injective. Other applications include the 21Shares Injective ETF and the REX-Osprey INJ Staking ETF.

Their progress could indicate growing interest in bringing specialized blockchain networks into traditional investment products. However, proposed applications should not be confused with approved or launched funds.

For Injective, INJC provides a new route for investors to access its native token, while the network continues developing infrastructure for trading, derivatives and tokenized assets. The next indicators to watch will be the ETF’s assets under management, trading activity and actual net staking rewards.