Injective Labs has partnered with 21Shares to introduce AINJ, an Exchange-Traded Product (ETP) connected to INJ that allows users to gain exposure to INJ tokens and capture staking rewards. The ETP will trade on Euronext Amsterdam and Euronext Paris, backed by 25 banks and brokerages, including Interactive Brokers and eToro. Injective Labs sees AINJ as a strategic advancement bridging traditional finance and decentralized markets, paving the way for broader institutional participation in the $INJ ecosystem.
AINJ, with assets under management of $128.6 million and a 2.5% fee, is one of the few crypto tokens globally to have an ETP associated with it. The product is designed to track Injective’s performance and capture staking yield for reinvestment. With a current staking reward of 19.38%, AINJ offers a straightforward way for investors to participate in a diversified portfolio while benefiting from Injective’s staking mechanism.
The ETP will be physically backed by INJ and stored in cold storage by a custodian. Securities listed on Euronext markets are regulated under the single Euronext Rule Book, ensuring compliance with all applicable regulations. 21Shares, with over $3 billion in assets under management for their crypto offerings, is supporting the launch of AINJ and has been instrumental in the push for a spot Bitcoin ETF alongside Ark Invest.
Injective’s entry into the ETP market comes at a time of growing interest in digital asset ETPs beyond Bitcoin, with the market preparing for Ethereum ETFs to start trading. Some firms have already submitted applications for ETPs tied to tokens like Solana, while experts believe spot Ethereum ETFs will open the “floodgate” for funds linked to other digital assets. However, the lack of an established futures market for these tokens could pose a challenge to the approval process for these products.
Overall, the launch of AINJ represents a significant milestone for Injective in integrating with traditional financial markets and institutions. The partnership with 21Shares and the availability of AINJ on major exchanges and brokerages demonstrate a strategic move towards broader adoption of INJ and injective’s staking mechanism by both institutional and retail investors. In a rapidly evolving crypto market, developments like AINJ highlight the continued innovation in financial products that bridge the gap between traditional and decentralized markets.
