Canary Trims Its Staked Injective ETF to a 90% Floor

Canary Capital Group LLC filed a third pre-effective S-1 amendment for the Canary Staked INJ ETF on September 24, 2026. The trust still aims to list on Cboe BZX under ticker INJS, and it still has no public market.

The new draft tells a different operational story than a token rally. The sponsor now expects to stake at least 90% of holdings in normal conditions, a hard floor that leaves a cash-and-coin sleeve for daily redemptions against Injective’s 21-day unlock.

Amendment No. 3 Locks In the 90% Floor

The original Form S-1 went in on July 17, 2025, under file 333-288721, for a Delaware trust formed on June 9, 2025. Pre-effective Amendment No. 2, dated June 25, 2026, said the sponsor would seek to stake all of the trust’s INJ except a reserve for redemptions and expenses. Amendment No. 3 keeps that reserve language and adds the number.

The prospectus now says the sponsor anticipates that at least 90% of the Trust’s INJ will be staked under normal circumstances. That is a 10% unstaked sleeve, not a promise to lock every coin. Creations and redemptions still run in baskets of 10,000 shares, in INJ or cash, through authorized participants.

Net asset value is supposed to track the CoinDesk Injective Benchmark Rate 60m NY Rate, struck at 4:00 p.m. Eastern time from executed trades on major platforms. The trust is not registered under the Investment Company Act of 1940. Ordinary expenses, including the sponsor fee, are to be paid in INJ, which means the coins behind each share can shrink if staking income does not cover the bill.

Canary Capital Group LLC, a Delaware firm formed on September 12, 2024, is the sponsor. Steven McClurg, the chief executive, signed the June amendment. Paralel Distributors LLC is named as marketing agent, the same shop Canary uses on its live funds.

The 21-Day Unbonding Problem Inside an ETF

Injective pays stakers for backing validators, and it makes them wait to leave. Official network docs say undelegation, the act of unstaking from a validator, takes an unstaking period of 21 days. Redelegation to a different validator is instant. Rewards can be withdrawn at any time. During unbonding the coins are locked, cannot be moved, and earn nothing.

The S-1 copies that clock. It warns that a wave of redemptions larger than the unstaked sleeve could delay settlement or pause the redemption window. Accrued rewards still count in daily NAV even before unbonding finishes, so the books can show INJ the trust cannot yet deliver.

HOW THE TRUST PLANS TO STAY LIQUID

• The sleeve: At least 90% is meant to sit with validators, which leaves up to 10% unstaked for everyday basket trades.
• Credit backup: The liquidity policy allows credit lines, including the sponsor’s own, but the prospectus says no facility has been signed.
• Restaked rewards: New INJ from staking is restaked except amounts held back for redemptions, expenses, or protection of the trust.
• Daily scoreboard: Each trading day the share of assets that is staked is supposed to appear on canaryetfs.com.

The policy is written to match Cboe’s listing rules and, in the new draft, to sit with the exchange’s generic listing standards. Secondary-market holders can still sell shares during the session without waiting 21 days. The delay hits the trust when authorized participants redeem large blocks and the sleeve runs dry.

$29.6 Million in a Live Staked Cousin

INJS is not Canary’s first staked coin product. The firm’s site already lists live funds for Hedera, Litecoin, Marinade Solana, staked Sui, staked TRX, and XRP. INJS is not on that board.

The closest working model is the Canary Staked SUI ETF, ticker SUIS, which began trading on Nasdaq on February 17, 2026. As of September 24, 2026, the same day as the INJ amendment, that fund reported $29.6 million in net assets, a 0.75% sponsor fee, and 100.00% of coins staked through Luganodes and Everstake. It published a 1.56% net staking yield and a 1.73% gross yield, with rewards folded into NAV rather than paid as cash.

TWO CANARY STAKED FUNDS ON SEPTEMBER 24

Canary’s account spent the morning of September 24 describing the live TRX product as a registered way to hold TRX with staking rewards. The INJ amendment hit the SEC archive that afternoon. A brokerage share that compounds protocol yield into NAV is the product being sold. Spot INJ already trades on Coinbase, Kraken, and Crypto.com, which the filing itself names.

SUIS at $29.6 million, fully staked, is the scale this wrapper has reached on a larger chain with named validators and a printed fee. That is the book INJS would be asked to beat, not a futures squeeze on the token.

Who Collects the Staking Cut?

Injective’s reward rate is a function of issuance, how much supply is bonded, a community tax, and the commission the chosen validator keeps. The S-1 walks through those inputs as of September 15, 2026, and lands on an implied annualized reward of about 6.8% after those haircuts and after actual block production.

INJECTIVE STAKING MATH IN THE S-1

• Issuance: The annualized issuance rate was 4.40% of total supply as of September 15, 2026.
• Bonded supply: 58,037,697 INJ, about 47.2% of total supply, was bonded to validators.
• Community tax: 5.00% of rewards was directed to the community pool.
• Slashing: The share of stake forfeited for downtime or double-signing was set at 0, with jailing and, for double-signing, tombstoning instead.

Shareholders do not receive that 6.8% gross. Staking fees are to be split among the staking provider, the sponsor, and the custodian. The September prospectus still prints those caps as blank lines. The annual sponsor fee is also a blank percent of INJ holdings, accrued daily and payable monthly in INJ or cash. If staking income cannot cover that fee, the sponsor sells or transfers INJ and the coins behind each share decline even if the token price rises.

The June Injective summary of Amendment No. 2 had talked about a 10% cap on staking fees. That figure is not in the September blanks. Until those lines are filled, nobody can say whether INJS is cheaper or dearer than SUIS at 0.75%.

BitGo Holds Every Coin the Trust Owns

BitGo Bank & Trust, N.A., an OCC-chartered national bank, is named as custodian and will hold all of the trust’s INJ. Cash sits at U.S. Bank, N.A. U.S. Bancorp Fund Services, LLC, is transfer agent and administrator. CSC Delaware Trust Company is trustee.

The Sponsor anticipates that at least 90% of the Trust’s INJ will be staked under normal circumstances.

Canary Staked INJ ETF prospectus, Amendment No. 3, September 24, 2026

The trust itself will not run a validator. The sponsor administers staking through the custodian and one or more staking providers. BitGo keeps exclusive possession of the private keys. The staking provider has no say over how much INJ is staked or when. The September draft still does not name that provider. SUIS already lists Luganodes and Everstake.

WHAT WE KNOW

• The wrapper: INJS is designed as a commodity-based trust on Cboe BZX, with 10,000-share baskets and a CoinDesk 4:00 p.m. Eastern benchmark.
• The stake target: At least 90% of INJ is expected to be staked in normal conditions, with the staked share posted each trading day.
• The unlock: Undelegated INJ enters a 21-day unbonding period during which it cannot be moved and earns no rewards.

WHAT IS UNCONFIRMED

• The fees: Sponsor fee and aggregate staking-fee cap are still blank in Amendment No. 3.
• The validator: No staking provider is named for INJS, and no credit facility is in place.
• The listing date: The S-1 remains pre-effective and subject to completion, with no public market for the shares.

FDIC insurance covers cash at the custodian, not the coins. BitGo carries private insurance that is shared across clients and is not written for this trust alone. Since inception, the filing says, Injective has not had a major public slashing event hitting a large share of validators. Governance can change slashing parameters without the trust’s consent.

The 19b-4 Clock Ran Out in April

Cboe BZX asked the SEC in a August 11, 2025, filing to list and trade shares of the fund under the commodity-based trust rule. Notice ran in the Federal Register on August 28, 2025. The commission took no public comment letters, then stretched the file, opened proceedings on November 19, 2025, and later marked that order withdrawn on March 9, 2026. A January 28, 2026, notice set an April 25, 2026 decision date.

THE INJS PAPER TRAIL

1. June 9, 2025: The Canary Staked INJ ETF is formed as a Delaware statutory trust.
2. July 17, 2025: Canary files the original Form S-1, file 333-288721.
3. August 11, 2025: Cboe BZX files to list the shares under Rule 14.11(e)(4).
4. November 19, 2025: The SEC opens proceedings on the listing file, an order later withdrawn on March 9, 2026.
5. April 25, 2026: The extended date by which the commission was to approve or disapprove the Cboe proposal falls.
6. June 25, 2026: Pre-effective Amendment No. 2 still aims to stake all INJ except a reserve.
7. September 24, 2026: Pre-effective Amendment No. 3 sets the 90% floor and leaves fee lines blank.

Fourteen months after the first S-1, the product is still a prospectus. The new draft leans on generic listing language and a published liquidity policy, which is the path Canary has already used to get staked SUI and staked TRX into brokerage accounts. INJ last changed hands around $7.83 on September 26, 2026, in a $7.72 to $8.39 session range, with a market value of $782.50 million, well above $5.40 on August 27 and still a long way from a listed INJS share.

The amendment filled in the staking floor, the custodian stack, and the redemption warning. It did not fill in the price of the wrapper, the name of the validator, or a listing date. Those lines are what turn a 6.8% network rate into a fund people can actually hold.

Disclaimer: This article is news reporting and analysis of a pre-effective SEC filing and related market figures. It is for information only and is not investment, tax, or trading advice, and it is not an offer to buy or sell INJ, INJS, SUIS, or any other security or digital asset. Readers should consult a licensed financial adviser and, where needed, a tax professional before buying, staking, or selling crypto or crypto exchange-traded products. Figures, fees, listing status, and network parameters reflect the cited filings and price sources as of the dates named in the piece and can change as Canary amends the S-1 or as Injective governance resets staking rules.