Key insights:
- INJ price saw a slight rise from the bottom despite selling pressure in the broader market.
- Canary filed an updated S-1 for its staked Injective ETF with the US SEC.
- Derivative market data shows a rise in INJ open interest.
INJ price trades under selling pressure, but a filing with the U.S. Securities and Exchange Commission (SEC) has sparked speculation over a potential bounce.
Canary amended its staked Injective ETF application to reveal new details, including price index, custodians, and share distribution plan.
Canary Capital Updates Staked Injective ETF with the US SEC
According to a US SEC submission, Canary has updated its S-1 filing for its staked Injective ETF. The trust’s primary investment objective is to seek to provide exposure to the spot INJ price.
The secondary investment objective for the trust is to generate yield through its participation in the staking program. The issuer has not revealed details of the management fee and ticker symbol for Canary Staked Injective ETF.
BitGo will serve as the custodian of the exchange-traded fund. Moreover, U.S. Bancorp Fund Services is revealed as administrator, transfer agent, and cash custodian for the trust.
The issuer has not mentioned the staking provider. However, the Injective ETF plans to stake all of the trust’s INJ through one or more staking providers.
Canary Capital had previously registered a statutory trust for the proposed staked Injective ETF in Delaware.
The issuer is expected to file more S-1 amendments to reveal additional details in the coming weeks. Also, the community expects Canary Staked Injective ETF to get approval in the next few months.
The ETF Announces INJ Price Index
Canary announced that the trust will hold INJ and establish its net asset value in reference to the CoinDesk Injective USD CCIXber 60m New York Rate pricing benchmark.
The pricing benchmark is calculated by CoinDesk Indices based on a 60-minute time-weighted average price of the INJ-USD CCIXber Reference Rate.
The issuer will sell or redeem staked INJ ETF in blocks of 10,000 shares. Other details disclosed in the amended S-1 include Paralel Distributors LLC as marketing agent and planned distribution.
The injective ETF plans to list and trade on Cboe BZX Exchange. It will offer exposure to spot INJ price, along wth additional earnings through its staking program.
Will INJ Price Rebound?
Injective (INJ) price saw a slight bounce in the last few hours, but was still down more than 5% over the past 24 hours. At the time of writing, the price was trading at $4.57.
The 24-hour low and high were $4.54 and $5.08, respectively. Trading volume also jumped slightly in the last few hours.
Analysts pointed out that INJ price was respecting higher-timeframe support with strong dip buying. Also, the structure remains bullish with higher and higher lows, with consolidation near support could trigger upside move.
CoinGlass data showed positive sentiment in the derivatives market. At the time of writing, the total Injective futures open interest dropped by almost 6.55% in the past 24 hours.
However, the 4-hour INJ futures open interest on Binance, OKX, and Bybit climbed by 0.32%, 3.25%, and 0.73%, respectively.