US SEC opens comment period on proposed staked Injective ETF from Canary

Key points:

• SEC begins review of Canary’s staked Injective ETF proposal.
• ETF would list on Cboe BZX Exchange if approved.
• INJ price drops to $13.33, facing key technical supports.

The U.S. Securities and Exchange Commission has begun reviewing Canary’s proposal for a staked Injective exchange-traded fund. The agency invited public comments within 21 days and has up to 90 days to determine the next steps.

If approved, the ETF would track Injective’s native token and list on the Cboe BZX Exchange. Canary submitted the proposal last month, marking another attempt to introduce staking-based products into regulated markets.

The exchange argued in its August filing that Injective’s $1.4 billion market capitalization reduces the likelihood of price manipulation. It also noted that INJ trading is geographically diverse and continuous, making manipulation prohibitively expensive.

Expanding Crypto ETF Landscape With Staking Focus

The filing arrives during a period of increased proposals for staking-related ETFs under the SEC’s current administration. Several firms are competing to launch products that incorporate staking yields, targeting demand from both institutions and retail investors.

VanEck recently filed for a JitoSOL ETF designed to track the liquid staking token of the Jito Network. The Jito Foundation said the vehicle would be the first spot Solana ETF backed entirely by a liquid staking asset.

Additionally, REX-Osprey’s Solana ETF has integrated staking rewards through its own collaboration with JitoSOL. These developments highlight a broader market trend of combining staking mechanisms with regulated investment products.

In May, the SEC clarified that many proof-of-stake features do not fall within its remit. Later, it further confirmed that certain liquid staking services are not securities activities.

Injective Market Faces Pressure Amid Technical Weakness

Injective has recently fallen from resistance near $16.85 and now trades at $13.33, reflecting an 8.69% daily decline. The token has retested the 50-day simple moving average twice, but weakening buy-side activity shows fading momentum.

Fibonacci analysis indicates support around $14.37 at the 0.618 retracement, with deeper cushions near $10.97 and $8.93–$6.64. Sustained defense of the $13–14 range is critical to avoid sharper losses.

Analyst Dark Knight said macro drivers, particularly Ethereum’s possible breakout, could restore confidence in Injective. Renewed sentiment may allow INJ to retest $16.85 resistance and, if cleared, advance toward $19.15 as the next target.