Canary Capital launched its Canary Staked INJ ETF on Nasdaq under ticker INJC on November 5, 2026. The issuer describes it as the first U.S. spot staked INJ ETF, combining exposure to Injective's native token with potential staking rewards reflected in the fund's net asset value.
Nasdaq's listing notice confirms the November 5 start. Cointelegraph's launch report also pointed to the fund's plan to stake at least 90% of its INJ under normal circumstances. That percentage describes an allocation target, not an annual return or a permanently fixed allocation.
The product brings a specific tradeoff into a brokerage account: investors can hold exposure to staked INJ without managing delegation themselves, while accepting fund expenses and the operational constraints of staking.
The 90% target leaves room for redemptions
Canary's registration statement says the sponsor will seek to stake all the trust's INJ except amounts reserved for foreseeable redemptions, expenses, or protecting the trust's assets. It anticipates staking at least 90% under normal conditions.
The reserve has a practical purpose. Injective's staking explainer says unbonding takes 21 days. During that window, the affected INJ cannot move and earns no staking rewards. Keeping some tokens unstaked gives the fund assets it can use without waiting through that process.
The allocation requires an ongoing management decision. Committing more INJ to validators increases the amount eligible to earn rewards. Keeping more available supports liquidity. The appropriate balance can change with the fund's needs.
Nasdaq has named Flow Traders U.S. LLC as INJC's designated liquidity provider. That exchange role concerns trading in the shares. The underlying token reserve serves a separate purpose: meeting the fund's needs while most holdings participate in a network with a delayed exit.
A shareholder selling shares and the fund unbonding tokens are therefore separate transactions. Investors should not interpret the 21-day period as a mandatory holding period for their brokerage position.
Rewards accumulate inside the fund
Injective explains that net staking rewards are included in daily NAV and restaked. The intended benefit reaches shareholders through the assets backing their shares.
That structure differs from receiving a regular cash payment. A growing token balance can contribute to fund value, but its dollar value still depends on INJ's price. Even a larger balance can be worth less if the market price falls enough.
Fees also affect the result. Canary lists a 1.10% annual sponsor fee, and staking rewards are subject to separate fees shared among service providers. A network staking rate cannot be read directly as the shareholder's expected return.
The issuer's launch announcement says rewards are variable and not guaranteed. It also allows for certain staking-related income to be held for future distribution under the prospectus, while Injective's explainer describes the operating plan as reinvestment. Staking is intended to build the fund's assets; investors should not assume a scheduled cash income stream.
For anyone comparing staking-linked products, token rewards are only part of the total investment return. INJC's objective combines price exposure with additional INJ, after costs. Neither component fixes the value of the investment.
Brokerage access transfers operational responsibility
The fund handles staking through service providers. Canary administers the program, staking providers arrange validator participation, and the custodian controls the private keys.
Investors consequently give up decisions they would make when holding and staking INJ themselves, including validator selection and onchain governance participation. This is a different arrangement from holding assets under your own keys.
It also concentrates operational responsibility outside the investor's account. Canary's launch disclosures warn that validator misconduct or prolonged downtime can trigger slashing penalties. Those penalties can reduce the fund's INJ, and recovery from custodians or staking providers is not guaranteed because their liability and resources are limited.
The Nasdaq listing changes how investors access INJ while leaving them exposed to those network risks.
There is also a legal distinction behind the ETF name. Canary states that INJC is not registered under the Investment Company Act of 1940 and does not have the same regulatory protections as funds registered under that act. Investors receive exchange-traded exposure through a trust holding a single digital asset.
Canary has made staked INJ exposure available through a listed product. Whether that arrangement is attractive depends on the value investors place on having service providers manage staking relative to expenses, custody dependence, and INJ price risk.
Overview
INJC launched on Nasdaq on November 5 with a normal-condition target to stake at least 90% of its INJ. Net rewards are intended to accumulate in fund assets, with shareholder results affected by fees and token prices. The underlying staking process carries a 21-day unbonding period.
