The U.S. Securities and Exchange Commission is seeking public input on whether to approve a staked Injective (INJ) exchange-traded fund, setting the stage for its next steps on the proposal.
The securities watchdog asked for comments on the proposed Canary Staked INJ ETF to be filed within the next 21 days, according to a filing on Monday. The agency has up to 90 days to decide on the next steps.
Canary filed its proposal for the staked INJ fund last month, which if approved by the SEC, would track the native asset of the Injective blockchain. If it's allowed to list and trade, the ETF would trade on the Cboe BZX Exchange.
In an Aug. 11 filing, the exchange said that INJ's growth to a market cap of more than $1.4 billion reduces the "susceptibility to manipulation."
"The geographically diverse and continuous nature of INJ trading makes it difficult and prohibitively costly to manipulate the price of INJ and, in many instances, the INJ market can be less susceptible to manipulation than the equity, fixed income, and commodity futures markets," the exchange said.
Amid a friendlier regulatory environment during President Donald Trump's second administration, several firms have proposed a slew of crypto ETFs tracking assets from Dogecoin to Solana. More recently firms have been vying for crypto ETFs that involve staking.
Last week, VanEck filed a registration statement proposing a JitoSOL ETF aimed at tracking the price of the liquid staking token. The Jito Foundation said the fund would be "the first spot Solana ETF 100% backed by a liquid staking token (LST): the Jito Network’s JitoSOL," in an earlier statement.
REX-Osprey's Solana staking ETF has also integrated staking rewards through a partnership with JitoSOL, according to an announcement made in July.
In recent months, the SEC has set out to clarify its stance on staking. In May, the agency said that most proof-of-stake features do not fall under its remit, and later clarified that certain liquid staking activities do not involve securities.
