Cboe Files to List Staked Injective ETF
The Chicago Board Options Exchange (Cboe) has submitted a filing to the Securities and Exchange Commission (SEC) seeking to list an exchange-traded fund (ETF) proposed by Canary Capital, focusing on staked Injective tokens. This move represents a significant development in the burgeoning sector of regulated cryptocurrency investment products within the United States. The filing, formally a 19b-4 submission made on Monday, follows Canary Capital’s earlier filing of an S-1 application for a staked Injective token fund with the SEC on July 17, as reported by Cointelegraph. The fund’s stated aim is to generate returns through accruing staking rewards using a vetted staking platform.
This listing would mark the third approved staked altcoin ETF, adding to the growing portfolio of crypto investment vehicles available to U.S. investors. Prior to this, approvals were granted for staked Solana and staked Ether ETFs, both achieved on June 30th. The Cboe’s filing signals a continued momentum in the crypto investment space.
The decision to pursue this listing comes amidst an evolving regulatory environment, shaped in part by the current U.S. administration’s support for innovation within the crypto industry. This supportive atmosphere has fostered an environment conducive to the development of regulated investment products like the proposed Injective ETF.
A pivotal factor in this positive shift is the SEC’s recent ruling that staking activities do not constitute securities offerings. This clarification, delivered by the SEC in May, was widely hailed as a “major step forward” for the broader U.S. cryptocurrency industry, as commented on by Alison Mangiero, head of staking policy at the Crypto Council for Innovation. Mangiero emphasized that the SEC’s recognition of staking as a core component of modern blockchain operations—rather than a speculative investment contract—is critical. Her statement underscores the fundamental shift in the regulatory approach towards these technologies.
The anticipated inflows into the Injective ETF represent a considerable opportunity for the asset. If approved, Canary Capital’s ETF would provide traditional investors with accessibility to the Injective protocol’s governance token, potentially boosting liquidity and increasing the token’s visibility. The ETF could contribute to recapturing the token’s previous peak of $52, which was reached on March 14, 2024. Currently, the token is trading at approximately $15.10, reflecting a decline of more than 71% from its all-time high.
Comparisons to Bitcoin’s ETF success are noteworthy. Following the approval of the first U.S. spot Bitcoin ETFs in February 2024, when Bitcoin’s price surpassed $50,000, Bitcoin ETF inflows accounted for roughly 75% of the world’s investment in the cryptocurrency. However, the market response to Ethereum’s spot ETF has been less pronounced.
Ethereum’s price experienced a substantial decline following the debut of the spot ETF in 2024, dropping from $3,441 on July 23rd to a low of $2,116 by August 5th before initiating a recovery. This decline was largely attributed to outflows from Grayscale’s Ether ETF (ETHE), which realized over $4.3 billion in net negative outflows – a characteristic of the sole Ether ETF issuer currently experiencing losses, according to Farside Investors’ data.
The potential for the Injective ETF to provide increased liquidity and visibility for the asset is underscored by these comparisons. The market’s reaction to Ethereum’s spot ETF highlights the complexities and potential volatility associated with these new investment vehicles.
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