Injective Protocol ETP: A New Era for Crypto Investments

[TL; DR]

21Shares has launched Injective Protocol ETP which will trade on Euronext Paris (AINJ FP) and Euronext Amsterdam (AINJ NA).

AINJ will be available on more than 40 brokers including Saxo Bank, Swissquote and eToro.

The Injective Protocol ETP is likely to lead to a surge in institutional investment in INJ.

Introduction

2024 has been a very productive year for the crypto sector since several cryptocurrency derivatives have come onto the market giving investors a wide range of products to invest in. Already, 11 spot bitcoin exchange traded funds and two spot ETH ETFs were launched in the United States alone this year. This article delves into the recently launched Injective Protocol ETP – AINJ.

21Shares Launches Injective Protocol ETP

Injective (INJ) is now part of a small number of cryptocurrencies that have exchange traded products after 21Shares launched the Injective Staking Exchange-Traded Product (ETP) (AINJ). This exchange traded fund will allow individuals and institutions to invest in INJ without holding the asset. This is because such investors will get exposure to INJ through the ETP, traded on brokers and traditional financial exchanges.

AINJ exists on Euronext Paris (AINJ FP) and Euronext Amsterdam (AINJ NA) and is accessible through many brokerages which include Saxo Bank, Swissquote and eToro. As an ETP, AINJ is backed by an INJ token which is stored in cold storage. This ETP simplifies investment in INJ since it does not have complexities which investing in crypto assets create. It is important to note that all investment assets traded on Euronext markets are governed by the Euronext Rule Book that harmonizes regulations of various jurisdictions.

Explaining the versatility of AINJ 21Shares said, “100% physically-backed, the 21Shares Injective Staking ETP (AINJ) tracks the performance of INJ while capturing staking yields that are reinvested into the ETP for enhanced performance. Whereas blockchain networks are typically siloed, Injective Protocol supports seamless interactions across major networks, enabling a unique range of financial products and services. The 21Shares Injective Staking ETP offers a simple, regulated, and transparent way to benefit from the network's growing importance in decentralized finance (DeFi).”

A Candid Evaluation: What Makes AINJ Unique?

Just like other cryptocurrency derivatives AINJ opens new investment opportunities for traditional investors with little or no experience with crypto assets. One interesting thing about the Injective protocol ETF is that the investors benefit from its staking provision.

Based on prevailing link">crypto market trends, tokens that use the proof-of-stake consensus mechanism can be staked and generate rewards in return. Already, 21Shares has indicated that it will stake a percentage of the INJ in order to generate liquidity for investor redemptions. In the end, it will reinvest the rewards it gets from staking the crypto asset which increases the returns the investors earn from the digital asset investment. Currently, staking INJ is one of the crypto investments with the highest returns considering that the staked tokens generate 19.38% return per annum.

AINJ is one of the financial products that will add much value to the DeFi sector and the cryptocurrency market in general. This is because the exchange product helps to bridge the gap between traditional finance and decentralized financial markets. Commenting on this Injective Labs said, “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.”

AINJ will also result in much capital inflow into the crypto market as it is likely to attract interest from institutional investors. Posting on its blog Injective commented: “The introduction of AINJ is a significant milestone for institutional adoption, opening new gateways for large-scale entities to engage with Injective. This regulated, transparent product simplifies institutional participation and is already supported by some of the world’s leading traditional finance exchanges and brokerages...”

It added, “Currently, there are only a handful of select crypto assets with one or more associated ETPs globally. This highly selective pool of assets underscores the importance and innovation behind AINJ, as it joins an exclusive list of offerings that provide institutional and everyday participants with access to the burgeoning digital asset landscape.”

Injective Protocol ETP Impact: The Future of 21Shares and Injective Protocol

Considering that 21Shares has already filed an application for solana-sol" target="_blank" class="blog_inner_link">Solana ETF the market anticipates that it may introduce an INJ spot ETF. However, the asset manager may not consider launching a spot INJ ETF as an urgent development since it has introduced ETFs for more than 40 altcoins. Even if it decides to launch an INJ ETF as one of its crypto investments that may take much time due to regulatory constraints.

The rise in demand for INJ which institutional investment creates will likely lead to an increase in its utility. That may also result in a surge in INJ hodling which will likely push its price up. The fact that crypto assets have various derivatives shows the impact of the blockchain technology on the traditional financial sector.

How to invest in Injective Protocol ETP

Apart from crypto trading INJ investing in AINJ is one of the investment opportunities individuals and institutions may pursue. Let’s briefly discuss how someone can invest in the Injective Protocol ETP.

Open a brokerage account: In order to invest in the AINJ you need to open a brokerage account. The good news is that most of the brokers do not have minimum investment amounts, inactive fees and transaction fees.

Research on the ETP to invest in: It is not wise to invest in any ETP. One needs to carry out a thorough research to choose the best ETP to invest in. In our case, you may like to invest in AINJ.

Place the order: The way an investor buys ETPs is similar to how one purchases stocks. The investor needs to navigate to the Trading Section of the brokerage website and buy the asset using its ticker. Make sure to review the order to cross check the details which include its ticker and the amount. Once you check the details you confirm the order.

Conclusion

21Shares has launched an Injective protocol exchange traded product which investors can buy from over 40 brokers. The ETP is likely to attract much institutional investment into INJ which may enhance its liquidity. Some analysts also believe that in the future 21Shares may introduce an INJ spot ETF.

FAQs about Spot Bitcoin ETFs

What does 21Shares do?

21Shares is an asset management firm that offers cryptocurrency exchange traded products. As an example, it has a spot bitcoin-btc" target="_blank" class="blog_inner_link">bitcoin ETF, Bitcoin Cash ETF and Injective staking ETP.

Who is the owner of 21Shares?

Hany Rashwan is the founder, owner and CEO of 21 Shares which he started in 2018. 21Shares has several cryptocurrencies traded products such as Spot bitcoin ETF.

What is 21Shares bitcoin ETP?

The 21Shares Bitcoin ETP (ABTC) is an exchange traded product that tracks the price of bitcoin. It is an investment product that enables individuals and institutions to invest in bitcoin without owning it.

What is 21Share bitcoin ETF?

The ARK 21Shares Bitcoin ETF (ARKB) is an exchange traded fund that tracks the price of bitcoin. ARKB was launched in January 2024 following the United States SEC’s approval of spot bitcoin ETFs.