Injective Labs Launches AINJ, the First Staking-Linked ETP to Capture INJ Rewards
Partnership with 21Shares Brings Injective Staking to Traditional Financial Markets
Injective Labs has collaborated with 21Shares to launch AINJ, an Exchange-Traded Product (ETP) linked to INJ tokens that includes staking. This fund will enable users to gain exposure to INJ tokens on major traditional financial exchanges and brokerages, while also capturing staking rewards.
ETP Structure and Trading
AINJ will trade on Euronext Amsterdam (AINJ NA) and Euronext Paris (AINJ FP). The fund is supported by 25 different banks and brokerages, including Interactive Brokers, Saxo Bank, Swissquote, and eToro, among others.
Key Features and Benefits
“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 AINJ fund represents a significant milestone in Injective’s efforts to integrate with traditional financial markets and institutions.
INJ: A Growing Force in the Crypto Market
INJ, currently trading at $26.23, is one of the few crypto tokens globally to have an associated ETP. This highlights 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.
Staking and AUM
AINJ has $128.6 million in assets under management (AUM) and charges 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.
Custodian and Regulation
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.
The Role of 21Shares
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: The Future of Institutional Investment
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.
Market Outlook
The launch of AINJ 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, 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.
Conclusion
The launch of AINJ marks a significant milestone in the development of decentralized finance (DeFi) and highlights Injective’s commitment to integrating with traditional financial markets and institutions. As the DeFi ecosystem continues to evolve, we can expect to see more innovative products and services emerge, democratizing access to cryptocurrency investments.
FAQs
What is AINJ?
AINJ is an Exchange-Traded Product (ETP) linked to INJ tokens that includes staking, allowing users to gain exposure to INJ tokens on major traditional financial exchanges and brokerages while capturing staking rewards.
Who is supporting the launch of AINJ?
Injective Labs and 21Shares are collaborating to launch AINJ, with 25 different banks and brokerages, including Interactive Brokers, Saxo Bank, Swissquote, and eToro, among others, supporting the ETP.
How does AINJ track Injective’s performance?
AINJ is designed to track Injective’s performance and capture staking yield for reinvestment in the ETP. The fund has $128.6 million in assets under management (AUM) and charges a 2.5% fee.
What is the current staking reward for INJ?
The token currently offers an estimated 19.38% staking reward, although this is subject to change as network and market conditions evolve.
