Injective Labs, 21Shares launch first INJ-linked ETP on Euronext exchanges Assad Jafri · 4 weeks ago · 2 min read
The fund represents a significant milestone in Injective's efforts to integrate with traditional financial markets and institutions.
2 min read
Updated: Jul. 19, 2024 at 1:20 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Injective Labs, in collaboration with 21Shares, has announced the launch of AINJ — the Injective Staking Exchange-Traded Product (ETP) linked to INJ, which will include staking.
The fund will allow users to gain exposure to INJ tokens via major traditional financial exchanges and brokerages while also capturing staking rewards.
The ETP will trade on Euronext Amsterdam (AINJ NA) and Euronext Paris (AINJ FP). It will be supported by 25 different banks and brokerages, including Interactive Brokers, Saxo Bank, Swissquote, and eToro, among others.
According to Injective Labs:
“AINJ is not just a new financial product; it’s a strategic advancement that bridges the gap between traditional finance (TradFi) and decentralized markets. As a regulated financial offering, AINJ paves the way for broader institutional participation and adoption of $INJ”
The fund represents a significant milestone in Injective’s efforts to integrate with traditional financial markets and institutions.
INJ was trading at $26.23 as of press time, down 2% over the past 24 hours, based on CryptoSlate data.
AINJ
INJ is one of the few crypto tokens globally to have an associated ETP, highlighting its importance and the innovation behind the product. ETPs, such as AINJ, offer a straightforward way to participate in a diversified portfolio, combining the ease of stock trading with the benefits of mutual funds.
AINJ has $128.6 million in assets under management (AUM) and will charge a 2.5% fee. The product is designed to track Injective’s performance and capture staking yield for reinvestment in the ETP.
The token currently offers an estimated 19.38% staking reward, although this is subject to change as network and market conditions evolve.
The ETP will be physically backed by INJ, which will be kept in cold storage by a custodian. Securities listed on Euronext markets are regulated under the single Euronext Rule Book, which harmonizes all applicable regulations where it operates.
21Shares is renowned for working with major crypto projects and has been instrumental in the push for a spot Bitcoin ETF alongside Ark Invest. With over $3 billion in assets under management for their crypto offerings, the firm is well-positioned to support the launch and success of AINJ.
Crypto ETPs
Injective has now joined a select group of cryptocurrencies available to investors through traditional financial products. With a market cap of $2.4 billion, Injective is positioned to benefit from increased institutional and retail participation.
The launch comes amid growing interest in ETPs linked to digital assets beyond Bitcoin as the market prepares for Ethereum ETFs to start trading. Some firms have already begun submitting applications for ETPs connected to Solana (SOL).
Meanwhile, some industry experts believe spot Ethereum ETFs have opened the “floodgate” for funds linked to other digital assets. However, others believe that the lack of an established futures market for these tokens could hinder the approval process for these products.
