Asset manager 21Shares has launched an Injective exchange-traded product (ETP) on Euronext exchanges. This move brings Injective into a small group of cryptocurrencies accessible to investors through traditional financial products. The Injective Staking Exchange Traded Product (AINJ) will track the performance of Injective (INJ) and capture staking yield for reinvestment in the ETP. Injective is a decentralised blockchain designed for financial applications.
The ETP will be physically backed by INJ, which will be kept in cold storage by a custodian. It will trade on the Euronext Paris and Euronext Amsterdam exchanges. The launch is supported by 25 financial institutions, including major players like Interactive Brokers, Saxo Bank, Swissquote, and eToro.
AINJ has $128.6 million in assets under management and charges a fee of 2.5%. Securities listed on Euronext markets are regulated under the single Euronext Rule Book, harmonising all applicable regulations where it operates. Because Injective uses a proof-of-stake consensus mechanism, AINJ can stake INJ to secure the network and receive rewards. 21Shares stated that it stakes only a portion of the assets underlying its ETPs to ensure liquidity for investor redemptions.
According to Coinbase, INJ is paying an estimated 19.38% staking reward at the time of writing. INJ has a market cap of $2.4 billion. Various staking ETPs are available in Europe. 21Shares launched an Ethereum staking ETP in 2019. It launched the Staking Basket Index ETP (STAKE) with seven underlying coins last year. CoinShares began offering eight ETPs with staking in Germany last year.
Fidelity proposed a similarly structured Ethereum fund in the United States, but later removed the staking feature. Grayscale introduced the Grayscale Dynamic Income Fund for qualified US investors in March. This fund prioritizes staking income over capital growth.
Injective debuted on the Cosmos ecosystem in 2021 with backing from Binance and investor Mark Cuban. It integrated with the Ethereum and Solana chains in 2022. In an overview published on July 4, 21Shares noted that the chain has only 60 validators. Injective needs to increase its user base and liquidity to compete effectively with higher-ranking protocols.
The new ETP could be a significant boost for Injective. The report highlighted Injective’s competitive advantages in its open liquidity pool and real-world asset module. Investors and the cryptocurrency community will be watching closely to see how Injective performs in the traditional financial markets.
