Canary Capital has taken a significant step towards launching a Staked Injective (INJ) Exchange Traded Fund (ETF) in the United States by registering a statutory trust in Delaware. This move signals the firm's intent to offer investors a regulated and accessible way to gain exposure to Injective, a blockchain known for its decentralized finance (DeFi) applications, while also benefiting from staking rewards.

The creation of the Delaware trust is a crucial preliminary action in the complex process of bringing a crypto-backed ETF to the U.S. market. The proposed ETF aims to track the spot price of Injective's native token, INJ, and simultaneously generate additional INJ tokens through staking. This dual approach would allow investors to profit from both the price fluctuations of INJ and the passive income earned through staking, a process of participating in the network's validation and governance.

To fully realize the launch of the Staked Injective ETF, Canary Capital must navigate several regulatory hurdles. Following the trust's establishment, the company is expected to file a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). This comprehensive document provides detailed information about the ETF, including its investment strategy, risks, and management team, allowing the SEC to thoroughly assess its viability and compliance with investor protection regulations.

Upon successful completion of the Form S-1 review, Canary Capital will then need to submit a Form 19b-4, which is specifically required for listing the ETF on a national exchange. This filing necessitates exchange approval, ensuring that the ETF meets the exchange's listing standards and trading requirements.

Injective is a blockchain that facilitates cross-chain interoperability. 21Shares currently offers an Injective Staking ETP (AINJ). This ETP tracks the performance of INJ and reinvests staking yields into the ETP.

While Canary Capital's move is a positive development for Injective, it's important to note that the approval process for crypto ETFs in the U.S. can be lengthy and uncertain. The SEC has been cautious in approving spot crypto ETFs, citing concerns about market manipulation and investor protection. However, the recent approval of spot Bitcoin and Ethereum ETFs has potentially paved the way for other crypto assets to be considered for ETF products.

The potential launch of a Staked Injective ETF has generated excitement within the Injective community and the broader crypto market. An ETF would not only provide a new avenue for investment in INJ but could also increase the token's visibility and legitimacy, potentially attracting institutional investors and driving further adoption of the Injective blockchain.