Canary Capital's amended S-1 lays out a 1.10% fee, a 90% staking target and a $15 million seed commitment from the Injective Foundation
Canary Capital wants to give US investors a way to own Injective’s INJ token and collect staking rewards without touching a crypto wallet.
The vehicle is the proposed Canary Staked INJ ETF, which would trade on Nasdaq under the ticker INJC, pending approval from the Securities and Exchange Commission. If it clears that hurdle, it would become the first staked INJ ETF in the US.
What the filing actually says
Canary first filed an S-1 registration statement with the SEC in July 2025. The most recent amendment landed on October 23, 2026, and it fills in many of the operational details.
The core plan is simple to describe. The fund would hold INJ, the native token of the Injective network, and stake at least 90% of its assets through third-party providers.
Staking is how proof-of-stake networks like Injective keep themselves running. Token holders lock up their coins to help validate transactions, and the network pays them rewards for doing it.
Rather than paying staking rewards out to shareholders as cash, the fund plans to reinvest net rewards back into the fund. That means the share price is meant to track both the price of INJ and the rewards that pile up over time.
The fees, the lockup and the backer
The fund would charge an annual management fee of 1.10%, and 30% of staking rewards would be allocated to fees.
Then there is the lockup problem. Injective imposes a 21-day unbonding period, which is the waiting time between asking to unstake tokens and actually getting them back. Canary’s answer, per the filing, is to keep enough liquidity on hand to handle redemptions, which helps explain why the staking target is 90% rather than everything.
The Injective Foundation has committed to an initial seed purchase of up to $15 million in ETF shares, paid in INJ rather than dollars.
Europe got there first
Regulated INJ exposure is not new everywhere. In Europe, 21Shares launched its AINJ product in 2024.
What this means for investors and the market
The risks are not small, and the filing does not pretend otherwise. INJ’s price can swing sharply, and the fund’s value would move with it. Staking yield does not cushion a steep drawdown in the underlying token.
There is also network-level risk. Proof-of-stake systems can penalize validators for misbehavior or downtime, and those penalties can reduce staked holdings. Because the fund relies on third-party providers to do its staking, it inherits some of their operational risk.
Liquidity is the third pressure point. The 21-day unbonding period means that during a wave of redemptions, the fund depends on its unstaked buffer.
The fee structure deserves scrutiny. A 1.10% annual charge plus a 30% share of rewards is a meaningful drag. Investors comparing INJC to staking directly will need to weigh that cost against the operational simplicity and regulatory protections an ETF wrapper provides.
The key thing to watch is the SEC. Everything described here is a proposal until regulators sign off, and the timeline for that decision is not set out in the filing details.
