CBOE Files to List Canary Capital's Staked Injective ETF

The Chicago Board Options Exchange (CBOE) has filed to list shares of Canary Capital's proposed staked Injective exchange-traded fund, expanding the growing wave of regulated cryptocurrency investment products in the United States.

Filing Details and Timeline

The CBOE's 19b-4 filing, submitted on Monday, follows Canary Capital's S-1 application for a staked Injective token fund filed with the US Securities and Exchange Commission on July 17. The proposed fund aims to generate staking rewards by providing validation services through an approved staking platform.

If approved, this would become the third staked altcoin ETF in the US market, following the successful approval of staked Solana and staked Ethereum ETFs on June 30.

Regulatory Environment and Approval Process

The filing emerges during a more favorable regulatory climate under President Donald Trump's administration, which has actively supported innovation in cryptocurrency-based investment vehicles.

The SEC has not yet formally acknowledged the ETF filings from Canary Capital and CBOE. Once acknowledged, the regulatory body will announce key deadlines for an initial response, typically within 30 to 45 days, potentially by early September.

However, the complete SEC review period can extend up to 240 days, meaning the final decision on the staked Injective ETF may not arrive until March 2026.

Staking Regulatory Clarity

A significant regulatory milestone occurred in May when the SEC ruled that staking does not violate securities laws. This guidance represents a major advancement for the US cryptocurrency industry, according to industry experts.

Alison Mangiero, head of staking policy at the Crypto Council for Innovation, emphasized that the SEC has recognized staking as a core operational component of modern blockchains rather than an investment contract, providing critical clarity for the sector.

Potential Impact on Injective Token

If approved, Canary Capital's ETF would provide traditional investors with exposure to the Injective protocol's governance token, potentially increasing liquidity and market visibility for the asset.

The ETF inflows could help the utility token recover toward its previous all-time high of $52, recorded on March 14, 2024. Currently, the token trades at $15.10, representing a decline of more than 71% from its peak value.

ETF Market Performance Comparison

Bitcoin ETF inflows demonstrated significant market impact, accounting for approximately 75% of new investment in the world's leading cryptocurrency when its price exceeded $50,000 in February 2024 following the approval of the first US spot Bitcoin ETFs.

However, Ethereum's spot ETF performance has shown more subdued results. Ether's price declined over 38% in the two weeks following the debut of spot ETFs for US trading in 2024, falling from $3,441 on July 23 to a local bottom of $2,116 on August 5 before beginning recovery.

Market Challenges and Outflows

The market response to Ethereum ETFs faced challenges from outflows in Grayscale's Ether ETF, which created significant selling pressure for the world's second-largest cryptocurrency. The fund has experienced over $4.3 billion in net negative outflows, making it the only Ether ETF issuer operating in negative territory.

Future Outlook

The proposed staked Injective ETF represents another step in the evolution of cryptocurrency investment products in traditional financial markets. The success of this application will depend on regulatory approval and market acceptance, factors that will ultimately determine its impact on both the Injective ecosystem and broader cryptocurrency adoption.

The cryptocurrency industry continues to await regulatory decisions that could shape the future landscape of digital asset investment vehicles in the United States.

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