Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Shares of the Canary Staked INJ ETF under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. 34-104226; File No. SR-CboeBZX-2025-115]</DEPDOC> <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Shares of the Canary Staked INJ ETF under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares</SUBJECT> <DATE>November 19, 2025.</DATE> <HD SOURCE="HD1">I. Introduction</HD> On August 11, 2025, Cboe BZX Exchange, Inc. (“BZX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)  <SU>1</SU> <FTREF/> and Rule 19b-4 thereunder, <SU>2</SU> <FTREF/> a proposed rule change to list and trade shares (“Shares”) of the Canary Staked INJ ETF (“Trust”) under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares. The proposed rule change was published for comment in the <E T="04">Federal Register</E> on August 28, 2025. <SU>3</SU> <FTREF/> <FTNT> <SU>1</SU>  15 U.S.C. 78s(b)(1). </FTNT> <FTNT> <SU>2</SU>  17 CFR 240.19b-4. </FTNT> <FTNT> <SU>3</SU>   <E T="03">See</E> Securities Exchange Act Release No. 103769 (Aug. 25, 2025), 90 FR 42041 (“Notice”). The Commission has received no comment letters on the proposed rule change. </FTNT> On September 25, 2025, pursuant to Section 19(b)(2) of the Act, <SU>4</SU> <FTREF/> the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change. <SU>5</SU> <FTREF/> This order institutes proceedings under Section 19(b)(2)(B) of the Act  <SU>6</SU> <FTREF/> to determine whether to approve or disapprove the proposed rule change. <FTNT> <SU>4</SU>  15 U.S.C. 78s(b)(2). </FTNT> <FTNT> <SU>5</SU>   <E T="03">See</E> Securities Exchange Act Release No. 104067, 90 FR 47008 (Sept. 30, 2025). The Commission designated November 26, 2025, as the date by which the Commission shall approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change. </FTNT> <FTNT> <SU>6</SU>  15 U.S.C. 78s(b)(2)(B). </FTNT> <HD SOURCE="HD1">II. Summary of the Proposal</HD> As described in more detail in the Notice, <SU>7</SU> <FTREF/> the Exchange proposes to list and trade the Shares of the Trust under BZX Rule 14.11(e)(4), which governs the listing and trading of Commodity-Based Trust Shares on the Exchange. <FTNT> <SU>7</SU>   <E T="03">See</E> Notice, <E T="03">supra</E> note 3. </FTNT> The investment objective of the Trust is to seek to track the performance of INJ, <SU>8</SU> <FTREF/> as measured by the CoinDesk INJ USD CCIX 60 min NY Rate (“Pricing Benchmark”), adjusted for the Trust's expenses and other liabilities. <SU>9</SU> <FTREF/> In seeking to achieve its investment objective, the Trust will hold INJ and will value its Shares daily as of 4:00 p.m. ET using the same methodology used to calculate the Pricing Benchmark. <SU>10</SU> <FTREF/> The Trust's assets will only consist of INJ, cash, and cash equivalents. <SU>11</SU> <FTREF/> When the Trust sells or redeems its Shares, it will do so in cash or in-kind transactions with authorized participants in blocks of 10,000 Shares. <SU>12</SU> <FTREF/> The Sponsor may stake, or cause to be staked, all or a portion of the Trust's INJ through one or more trusted staking providers and, in consideration for any staking activity in which the Trust may engage, the Trust would receive all or a portion of the staking rewards generated through staking activities. <SU>13</SU> <FTREF/> <FTNT> <SU>8</SU>  The Exchange states that INJ is the native, proof-of-stake cryptographic token of the Injective Network, a decentralized blockchain platform designed to support a wide range of financial applications and decentralized exchange functionality. <E T="03">See id.</E> at 42042. </FTNT> <FTNT> <SU>9</SU>   <E T="03">See id.</E> at 42044. Canary Capital Group LLC is the sponsor of the Trust, CSC Delaware Trust Company is the trustee, and a third-party custodian will be responsible for custody of the Trust's INJ. <E T="03">See id.</E> at 42041, 42043. </FTNT> <FTNT> <SU>10</SU>   <E T="03">See id.</E> at 42044. </FTNT> <FTNT> <SU>11</SU>   <E T="03">See id.</E> at 42043. </FTNT> <FTNT> <SU>12</SU>   <E T="03">See id.</E> at 42043-44. </FTNT> <FTNT> <SU>13</SU>   <E T="03">See id.</E> at 42043. </FTNT> <HD SOURCE="HD1">III. Proceedings To Determine Whether To Approve or Disapprove SR-CboeBZX-2025-115 and Grounds for Disapproval Under Consideration</HD> The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act  <SU>14</SU> <FTREF/> to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change. <FTNT> <SU>14</SU>  15 U.S.C. 78s(b)(2)(B). </FTNT> Pursuant to Section 19(b)(2)(B) of the Act, <SU>15</SU> <FTREF/> the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change's consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”  <SU>16</SU> <FTREF/> <FTNT> <SU>15</SU>   <E T="03">Id.</E> </FTNT> <FTNT> <SU>16</SU>  15 U.S.C. 78f(b)(5). </FTNT> The Commission asks that commenters address the sufficiency of the Exchange's statements in support of the proposal, which are set forth in the Notice, in addition to any other comments they may wish to submit about the proposed rule change. In particular, the Commission seeks comment on whether the proposal to list and trade Shares of the Trust, which would hold INJ, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission. <HD SOURCE="HD1">IV. Procedure: Request for Written Comments</HD> The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposal is consistent with Section 6(b)(5) or any other provision of the Act, and the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation. <SU>17</SU> <FTREF/> <FTNT> <SU>17</SU>  Section 19(b)(2) of the Act, as amended by the Securities Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposal by a self-regulatory organization. <E T="03">See</E> Securities Acts Amendments of 1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). </FTNT> Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule change should be approved or disapproved by December 15, 2025. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by December 29, 2025. Comments may be submitted by any of the following methods: <HD SOURCE="HD2">Electronic Comments</HD> • Use the Commission's internet comment form ( <E T="03">https://www.sec.gov/rules/sro.shtml</E> ); or • Send an email to <E T="03">rule-comments@sec.gov</E> . Please include file number SR-CboeBZX-2025-115 on the subject line. <HD SOURCE="HD2">Paper Comments</HD> • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. <FP> All submissions should refer to file number SR-CboeBZX-2025-115. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website ( <E T="03">https://www.sec.gov/rules/sro.shtml</E> ). Copies of the filing will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeBZX-2025-115 and should be submitted on or before December 15, 2025. Rebuttal comments should be submitted by December 29, 2025. </FP> <SIG> For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. <SU>18</SU> <FTREF/> <FTNT> <SU>18</SU>  17 CFR 200.30-3(a)(57). </FTNT> <NAME>Sherry R. Haywood,</NAME> Assistant Sec ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 10k characters. 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