SEC Reviews Canary’s Staked Injective ETF Proposal; INJ Under Pressure
The US Securities and Exchange Commission (SEC) has formally started reviewing Canary’s proposal for a staked Injective ETF. The 21-day public comment window is now open, and the SEC has up to 90 days to decide. This staked Injective ETF aims to track the native token INJ while passing staking rewards to investors. If approved, it would list on the Cboe BZX Exchange, adding a regulated staking product to the US market. Canary argues that Injective’s $1.4 billion market cap, dispersed trading, and strong liquidity reduce manipulation risks. Approval could boost institutional access to INJ and drive staking demand. Technically, INJ trades near $13.33, below resistance at $16.85 and close to the 0.618 Fibonacci support at $14.37. Key support zones are $13–14, with deeper cushions around $10.97 and $6.64. A breakdown below $13 could trigger larger declines. Traders should monitor the SEC comment period outcome and INJ’s price action to assess market impact.
Neutral
The SEC’s formal review of Canary’s staked Injective ETF marks a regulatory milestone that could open institutional channels and enhance staking demand for INJ, a positive long-term catalyst. However, INJ faces near-term technical headwinds as it tests key support at $13–14 and trades below major resistance. Historical precedent shows ETF approval processes can spark rallies, but comment periods and potential delays often introduce uncertainty. In the short term, price action around critical Fibonacci levels will guide trader sentiment. Over the longer horizon, securing approval and listing on the Cboe BZX Exchange should underpin greater market participation and price support, resulting in a balanced, neutral outlook until definitive outcomes emerge.