Image Credit: canary.capital
- Canary Capital launched the Staked INJ ETF on Nasdaq on Nov. 5.
- The fund aims to track INJ prices and earn potential staking rewards.
- INJC is not registered under the Investment Company Act of 1940.
Canary Capital launched its Staked INJ ETF on Nasdaq on Nov. 5, giving brokerage investors exposure to Injective’s token and potential staking rewards. Trading under ‘INJC’, the product lets investors access that exposure without managing a crypto wallet or arranging staking themselves.
Fund Holds INJ and Seeks Staking Rewards
The fund aims to reflect the price of INJ, fewer expenses and liabilities while earning additional tokens through Injective’s proof-of-stake validation process. Staking supports network operations in exchange for potential rewards.
Canary stated that the accrued staking rewards enter the trust’s daily net asset value rather than being paid directly as staking yield. Its disclosures also allow certain income to be held for potential future distribution under the prospectus.
Staking rewards vary, and validator misconduct or operational failures can expose staked INJ to penalties, including slashing, which can remove some of those tokens. Investors also remain exposed to declines in INJ’s price.
Fees Reduce the Return Investors Retain
Canary lists a 1.10% sponsor fee for INJC. Staking fees shared among the sponsor, staking providers and custodians also reduce the rewards retained by the trust.
The product page names BitGo Bank & Trust as digital-asset custodian and Luganodes as staking provider. These arrangements place custody and staking administration within the fund structure, while associated expenses affect performance relative to holding INJ directly.
Nasdaq Listing Adds Brokerage Access
Nasdaq confirmed Nov. 5 as the listing date and named Flow Traders U.S. as the designated liquidity provider. Investors buy and sell shares at market prices, which can differ from the value of the underlying holdings.
Canary describes Injective as a blockchain designed for financial applications, including trading, derivatives and tokenization. INJ supports network security through staking and is also used for governance and transaction fees.
Despite its ETF name, INJC is not registered under the Investment Company Act of 1940. It therefore does not carry the same regulatory requirements as mutual funds and traditional ETFs registered under that law.
