Canary Capital Proposes New ETF with CBOE
The Chicago Board Options Exchange (CBOE) has submitted a request to list Canary Capital’s proposed exchange-traded fund (ETF), which reflects the growing market for regulated cryptocurrency investment options in the U.S.
This move, detailed in CBOE’s 19b-4 filing, comes after Canary Capital submitted an S-1 application to the U.S. Securities and Exchange Commission (SEC) on July 17 for an INJ token fund, as reported by Cointelegraph.
The ETF aims to yield staking rewards by utilizing an “approved staking platform” for validation services.
Should it gain approval, this would mark the introduction of the third altcoin ETF, joining the recently approved Staked Solana (SOL) and Staked Ether (ETH) ETFs, which received the green light on June 30.
This submission occurs in a regulatory landscape that appears more favorable, particularly with U.S. President Donald Trump promoting innovation in crypto investments.
The SEC has yet to officially approve the ETF proposals from Canary Capital and CBOE. As usual, once approved, the SEC will set a significant deadline for an initial response, typically ranging from 30 to 45 days—possibly around early September.
That said, the SEC’s complete review process can stretch up to 240 days, suggesting that a final decision on the Staked INJ ETF might not be reached until March 2026.
In a pivotal ruling from May, the SEC stated that staking does not violate securities law. Alison Mangiero, who leads staking policy at the Crypto Council for Innovation, noted this as “a great step forward” for the cryptocurrency sector in the U.S.
She added, “The SEC acknowledges what we’ve been emphasizing for some time. Staking isn’t an investment contract but integral to modern blockchain operations.” This clarity seems to be crucial.
Potential Impact of ETF on INJ
If approved, the Canary Capital ETFs could introduce governance tokens linked to injection protocols to traditional investors, thereby enhancing liquidity and visibility for these assets.
This influx of ETFs might help utility tokens reclaim past highs—specifically, the $52 mark last seen on March 14, 2024. As of now, the token has experienced a decline of over 71% from that peak, trading at $15.10 at the moment.
For Bitcoin (BTC), ETF investments represented about 75% of new money entering the cryptocurrency market when its price surpassed $50,000 in February 2024 following the launch of the first U.S. Spot BTC ETF.
On the other hand, the market reaction to Ethereum’s Spot ETFs has been somewhat subdued.
After the launch of Spot ETFs for U.S. trading in 2024, Ether prices dipped more than 38%, dropping from $3,441 on July 23 to a low of $2,116 just two weeks later.
The fallout from Grayscale’s Ether ETF (ETHE) has added significant sales pressure on the second-largest cryptocurrency, with net negative outflows surpassing $4.3 billion to date.
