The Injective token saw a noticeable uptick following news of the trust’s formation. Over the past day, its value rose several percentage points, adding momentum to a broader upward trend that has been building through the week. Activity on the network has also picked up, with more users and transactions appearing on-chain.
The blockchain behind the token has been positioning itself as a fast, developer-friendly environment tailored toward emerging sectors like AI-powered applications and real-world-asset tokenization. Both of these themes have fueled significant interest in recent months, further amplifying attention around any potential U.S.-listed product tied to the ecosystem.
Regulatory tension remains a major hurdle
Even as new ETF proposals continue to emerge, the regulatory environment around staking-based funds remains challenging. Officials have expressed skepticism regarding whether certain structures qualify under the framework required for publicly traded investment companies.
In recent discussions with fund sponsors, regulators warned that the complexities of staking including reward mechanisms, lock-up periods, and validator arrangements could create conflicts with existing law. These concerns have already slowed efforts from other firms seeking approval for staking-enabled products tied to major networks.
The current administration has signaled openness to expanding digital-asset innovation, but regulators are still moving cautiously. Ultimately, even with political momentum building, any staked-crypto ETF will need to satisfy strict requirements governing transparency, risk management, and investor protection.
What comes next
The formation of the trust doesn’t mean the ETF is imminent, but it does indicate that Canary Capital is exploring the path forward. The next major milestone would be a formal filing for registration, which would provide deeper insight into how the fund intends to operate and how it plans to navigate the complexities of staking within a regulated investment vehicle.
