21Shares Applies for Injective ETF as Interest From Firms Grows

21Shares files with the SEC for a spot Injective ETF to offer direct INJ exposure as institutional interest in DeFi continues to grow.

21Shares has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a spot Injective (INJ) exchange-traded fund (ETF). 

The fund would offer direct exposure to INJ through physical token custody, meeting growing institutional demand for DeFi-based assets. This move comes amid increased attention on Injective’s Layer 1 blockchain and its expanding partnerships across financial markets.

Spot ETF Proposal to Offer Direct INJ Exposure

21Shares applied earlier this week, aiming to launch a spot ETF backed by actual INJ tokens held in cold storage. This structure is similar to spot Bitcoin and Ethereum ETFs, which have gained traction in traditional markets. 

According to the official filing, the fund seeks to give regulated access to Injective’s native asset through a secure and transparent investment vehicle.

The news was shared on Injective’s official X account, helping to raise awareness among market participants. 

Analysts noted that the move reflects growing demand from institutions for Layer 1 protocols that support DeFi applications. Canary Capital also filed for an INJ ETF in July, but 21Shares’ involvement brings wider recognition due to its existing ETF lineup.

Injective’s Ecosystem and Institutional Growth

Injective is a Layer 1 blockchain designed for decentralized finance, offering high-speed performance and low transaction costs. 

It uses delegated proof-of-stake (DPoS) to handle over 25,000 transactions per second. This infrastructure appeals to trading platforms and developers seeking scalable solutions.

The network’s roadmap includes Ethereum Virtual Machine (EVM) compatibility and tools for real-world asset trading. 

Backed by firms like Google Cloud and BitGo, Injective continues to expand its use cases and ecosystem. Recent initiatives include governance developments through the Injective Council and deeper integrations across the DeFi space.

Token adoption is increasing as institutions explore Injective’s potential. The ETF proposal by 21Shares aligns with these trends, offering a regulated path for investors to gain exposure to INJ.

INJ Price Holds Steady Amid Filing News

INJ traded around $8.75 following the ETF announcement, recovering from a brief dip to $7.80 earlier in October. The token has remained above $8.00 despite broader market volatility. Traders continue to watch for support levels as interest in the asset grows.

While INJ remains well below its all-time high of $52.75 reached in March, investor sentiment remains stable. 

Pineapple Financial recently allocated $100 million into digital assets, including INJ, showing increased institutional activity. The ETF proposal has not triggered major price movement yet, but analysts see it as a step toward deeper market integration.

The SEC’s review process is ongoing, and final approval could influence future pricing and institutional participation.

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