A prominent asset manager called 21Shares has put out an exchange-traded product (ETP) called Injective on the Euronext Paris and Euronext Amsterdam markets. This launch makes Injective one of the limited number of cryptocurrencies that investors can buy through standard financial products.
The brand-new Injective Staking Exchange Traded Product (AINJ) will follow the success of Injective (INJ) and put any funds it earns from staking back into the ETP. Injective is a decentralized blockchain tool made for use in finance.
The ETP is backed physically by INJ and is kept safe in cold storage by a caretaker. 25 financial companies, such as Interactive Brokers, Saxo Bank, Swissquote, and eToro, will be able to help with trading.
Injective ETP’s Asset Management
AINJ takes care of $128.6 million in assets and charges a 2.5% fee. Securities that are traded on Euronext markets follow the Euronext Rule Book, which brings together all the rules that apply to all of its activities.
Proof-of-stake is how Injective comes to a decision, so AINJ can stake INJ to protect the network and get benefits. 21Shares said in a report from last year that it only stakes a small part of the assets that support its ETPs to make sure that investors can easily cash out their investments.
Coinbase says that INJ’s staking return is 19.38% at the time of writing, but this rate is going down. It’s worth $2.4 billion on the stock market.
Europe has many staking ETPs to choose from. The Staking Basket Index ETP (STAKE), which is based on seven different coins, was released by 21Shares last year. An Ethereum staking ETP was released in 2019. It was in Germany last year that CoinShares started to offer eight ETPs with staking.
In the US, Fidelity suggested an Ethereum fund with a similar structure. However, they later changed their S-1 application to the SEC to remove the staking feature. Grayscale launched the Grayscale Dynamic Income Fund in March for qualified US clients. This fund puts staking income ahead of capital growth.
Injective first appeared on the Cosmos ecosystem in 2021 with help from Binance and investor Mark Cuban. In 2022, it was added to both the Ethereum and Solana chains. In a report released on July 4, 21Shares talked about Injective’s competitive benefits, such as its open liquidity pool and real-world asset module, even though the network only has 60 validators at the moment.
