Crypto traders are privy to the Injective (INJ) ETF as the CBOE (Chicago Board Options Exchange) proposed to register an ETF for staked Injective (INJ) with the asset manaager Canary Capital backing the proposal. This ESPN stretch goal would authorize the fund’s underwriter (INJ) to become the 3rd holder of the staked cryptocurrency ETFs in the US after Solana and Ethereum.
The ETF fell under the CBOE’s 19b-4 filing proposal in July 2025 and came alongside Canary Capital’s S-1 registration for the SEC. This ETF would be the first of its kind as it would not passively track the price of INJ but rather earn rewards through stakes in INJ’s POS network
Why The Staked Injective ETF Benefits the SEC-Approved ETF
The frog in the box strategy is possible with the implementation of this ETF. This is groundbreaking for staked injective holders as it rewards them without the need for cumbersome wallets or private keys.
Investors can obtain passive income through staking rewards without the need for running a node.
Fund managers and platforms can now rest easy with the legality of staking after the SEC’s review in May 2025.
“Staking is fundamental to blockchain infrastructure, not an investment contract. This clarity is a win for innovation,” remarked Alison Mangiero of the Crypto Council for Innovation.
What to Expect from the SEC Review Timeline For The Staked Injective (INJ) ETF
While the SEC continues to sit on these filings, there is speculation from crypto analysts monitoring previous ETF approvals suggesting an early September timeframe for the regulators to make some noise. If we consider the customary review clock, we are looking at a pretty extensive 8 month review timeline which would push the final decision to sometime in Q1 2026.
Three Short-Term Market Impacts to Watch After the Staked Injective (INJ) ETF Launch
1. Floodgates on Institutional Investment: These could put significant buying pressure on INJ from talk out of New York.
2. Increased Market Liquidity: Increased activity usually leads to reduced slippage and improvement in the order book.
3. Yield-Seeking Investors: These would be the most likely candidates to take up the offer because of the staking element presented.
Learning from Recent ETF Launches
The Ethereum ETF was notable for the volatility during the debut. Prices dropped by nearly 38 percent in the weeks following the approval which was primarily attributed to outflows.
The Broader Impact of Crypto ETFs
The approval of Injective’s ETF could be significant for other proof-of-stake tokens attempting to navigate into regulated environments. Industry experts are already speculating other potential candidates such as:
-Polkadot (DOT)
-Cardano (ADA)
Other layer-1 blockchain protocols
Final Remarks: Accelerating the Adoption of Cryptocurrency
The filing for the staked Injective ETF goes beyond the conventional perspective of an investment product. It marks a transformation in the manner through which altcoins and their respective networks are interacted with beyond the realm of the pseudonymous. The outcome of this filing might determine a new wave of ETF filings and the subsequent approval would influence the narrative surrounding the treatment of staking-based crypto assets by institutional players.
As with any other decision of the SEC, the outcome and reasoning for approval or denial are critical and shape the future of the crypto ecosystem. The entirety of the crypto ecosystem, including investors, builders, and fund managers, will be waiting with bated breath. It’s still unclear whether INJ can join Bitcoin and Ethereum as a tradable ETF asset. Regardless, its prospective contribution to progress the industry is unquestionable.
