Injective's Bullish Momentum: Canary Files Staked INJ ETF S-1 with SEC

Canary Capital has submitted an updated S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for its proposed staked Injective exchange-traded fund (ETF), outlining custodians, staking plans, and intended listing on the Cboe BZX exchange, as market signals around INJ and its derivative products remain mixed.

Key Takeaways

Canary Capital’s Submission: An updated S-1 registration statement was filed with the SEC for a staked Injective ETF.
Custodians and Management: BitGo will act as the custodian, with U.S. Bancorp Fund Services overseeing administration.
Investment Strategy: The ETF aims to provide exposure to Injective’s price and generate yields through staking.
Trading Details: Shares will be sold in blocks of 10,000, with plans to trade on the Cboe BZX Exchange.
Market Performance: Injective shows slight recovery while derivative trades reflect mixed interest.

Canary Capital staked Injective ETF S-1 filing details.

Overview of the Updated S-1 Submission

The revised filing provides comprehensive details on the pricing index, custodians, and distribution strategy for the ETF. The primary goal of the trust is to offer exposure to the spot price of Injective, while a secondary aim is to generate yields via participation in a staking program, as outlined in the SEC document.

According to the filing, BitGo will act as the custodian for the ETF, with U.S. Bancorp Fund Services named as the administrator, transfer agent, and cash custodian for the trust. The ETF plans to stake all of its tokens through selected staking providers, although the document did not specify which providers will be used.

At this point, the management fee and ticker symbol for the ETF have not been disclosed.

The amended S-1 indicates that the trust will hold Injective tokens and establish its net asset value based on the CoinDesk Injective USD CCIXber 60-minute New York Rate pricing benchmark. The benchmark is derived from a 60-minute time-weighted average price of the INJ-USD CCIXber Reference Rate, calculated by CoinDesk Indices.

The issuer has outlined that ETF shares will be offered or redeemed in blocks of 10,000. The documentation also mentions that Paralel Distributors LLC will serve as the marketing agent. Once operational, the ETF intends to list and trade on the Cboe BZX Exchange, providing exposure to the spot Injective price alongside additional profits from the staking program.

Previously, Canary Capital had registered a statutory trust for the proposed staked Injective ETF in Delaware. Market experts anticipate further amendments to the S-1 in the coming weeks that will provide additional insights.

Market Response

Despite broader market selling pressures, recent data indicates that the Injective token is showing signs of recovery from previous lows, accompanied by a slight increase in trading volume over the past hours. Conversely, data from the derivative market reveals that total futures open interest for Injective has seen a decline over the last 24 hours, while shorter-term futures open interest increased on several major exchanges.