Nasdaq has approved the listing application for Canary Capital’s Staked $INJ ETF, advancing a fund that would bring Injective token exposure and staking rewards to U.S. brokerage accounts.
The fund disclosed the approval in a Form 8-A filed November 3. The application covers the listing of its common shares on Nasdaq, not the effectiveness of its separate Securities Act registration.
The fund cannot yet sell shares: that registration must first become effective. Its latest S-1 amendment, filed November 2, is a preliminary prospectus and specifies the planned ticker INJC.
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INJC would hold $INJ directly, with BitGo as custodian. Investors would buy and sell shares through their brokers rather than manage the underlying tokens and staking themselves.
Staking Rewards, Minus Two Fees
Canary expects at least 90% of the fund’s $INJ to be staked under normal circumstances, while reserving tokens for redemptions, expenses and asset protection. Staking delegates tokens to validators that secure Injective’s proof-of-stake network, earning additional $INJ.
The proposed annual sponsor fee is 1.10% of the fund’s $INJ holdings. Separately, staking fees are expected to take 30% of the $INJ rewards generated, leaving 70% for the fund. Those staking fees would be shared among the staking provider, sponsor and custodian.
Rewards would generally be restaked, except for amounts reserved for redemptions, expenses or protecting the fund’s assets, and accrued rewards would enter its daily net asset value. That does not guarantee growth in the tokens backing each share: the filing says $INJ per share will decline if staking rewards are insufficient to cover the sponsor fee and other expenses.
Liquidity also constrains staking. $INJ being unstaked enters a 21-day unbonding period, during which it cannot be transferred and earns no rewards. Investors trading fund shares could also pay a premium or receive a discount to their underlying net asset value.
The November 2 filing says the Injective Foundation has indicated its intent to purchase up to $15 million of seed shares. That purchase is expected to be paid in $INJ rather than cash.
