diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2d3be5733e..54f1ee8c82 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -95,6 +95,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (x/genutil) [#10104](https://github.com/cosmos/cosmos-sdk/pull/10104) Ensure the `init` command reads the `--home` flag value correctly.
 * [\#9651](https://github.com/cosmos/cosmos-sdk/pull/9651) Change inconsistent limit of `0` to `MaxUint64` on InfiniteGasMeter and add GasRemaining func to GasMeter.
 * [\#9639](https://github.com/cosmos/cosmos-sdk/pull/9639) Check store keys length before accessing them by making sure that `key` is of length `m+1` (for `key[n:m]`)
 * (types) [\#9627](https://github.com/cosmos/cosmos-sdk/pull/9627) Fix nil pointer panic on `NewBigIntFromInt`
diff --git a/client/cmd.go b/client/cmd.go
index 2a8dd498c5..c2e3ff8a47 100644
--- a/client/cmd.go
+++ b/client/cmd.go
@@ -249,12 +249,8 @@ func readTxCommandFlags(clientCtx Context, flagSet *pflag.FlagSet) (Context, err
 	return clientCtx, nil
 }
 
-// ReadHomeFlag checks if home flag is changed.
-// If this is a case, we update HomeDir field of Client Context
-/* Discovered a bug with Cory
-./build/simd init andrei --home ./test
-cd test/config there is no client.toml configuration file
-*/
+// ReadHomeFlag checks if home flag is changed. If this is a case, we update
+// HomeDir field of Client Context.
 func ReadHomeFlag(clientCtx Context, cmd *cobra.Command) Context {
 	if cmd.Flags().Changed(flags.FlagHome) {
 		rootDir, _ := cmd.Flags().GetString(flags.FlagHome)
diff --git a/x/genutil/client/cli/init.go b/x/genutil/client/cli/init.go
index 87d1223f80..df5b20c006 100644
--- a/x/genutil/client/cli/init.go
+++ b/x/genutil/client/cli/init.go
@@ -7,6 +7,7 @@ import (
 	"os"
 	"path/filepath"
 
+	"github.com/cosmos/go-bip39"
 	"github.com/pkg/errors"
 	"github.com/spf13/cobra"
 	cfg "github.com/tendermint/tendermint/config"
@@ -23,7 +24,6 @@ import (
 	"github.com/cosmos/cosmos-sdk/types/module"
 	"github.com/cosmos/cosmos-sdk/x/genutil"
 	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
-	"github.com/cosmos/go-bip39"
 )
 
 const (
@@ -81,6 +81,7 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 			serverCtx := server.GetServerContextFromCmd(cmd)
 			config := serverCtx.Config
 
+			clientCtx = client.ReadHomeFlag(clientCtx, cmd)
 			config.SetRoot(clientCtx.HomeDir)
 
 			chainID, _ := cmd.Flags().GetString(flags.FlagChainID)
@@ -117,7 +118,6 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 
 			genFile := config.GenesisFile()
 			overwrite, _ := cmd.Flags().GetBool(FlagOverwrite)
-
 			stakingBondDenom, _ := cmd.Flags().GetString(FlagStakingBondDenom)
 
 			if !overwrite && tmos.FileExists(genFile) {
@@ -127,17 +127,20 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 			appGenState := mbm.DefaultGenesis(cdc)
 
 			if stakingBondDenom != "" {
-				stakingRaw := appGenState[stakingtypes.ModuleName]
 				var stakingGenesis stakingtypes.GenesisState
+
+				stakingRaw := appGenState[stakingtypes.ModuleName]
 				err := clientCtx.Codec.UnmarshalJSON(stakingRaw, &stakingGenesis)
 				if err != nil {
 					return err
 				}
+
 				stakingGenesis.Params.BondDenom = stakingBondDenom
 				modifiedStakingStr, err := clientCtx.Codec.MarshalJSON(&stakingGenesis)
 				if err != nil {
 					return err
 				}
+
 				appGenState[stakingtypes.ModuleName] = modifiedStakingStr
 			}
 
@@ -161,6 +164,7 @@ func InitCmd(mbm module.BasicManager, defaultNodeHome string) *cobra.Command {
 			genDoc.ChainID = chainID
 			genDoc.Validators = nil
 			genDoc.AppState = appState
+
 			if err = genutil.ExportGenesisFile(genDoc, genFile); err != nil {
 				return errors.Wrap(err, "Failed to export gensis file")
 			}
diff --git a/x/genutil/client/cli/init_test.go b/x/genutil/client/cli/init_test.go
index b51f528bf9..d5004d960d 100644
--- a/x/genutil/client/cli/init_test.go
+++ b/x/genutil/client/cli/init_test.go
@@ -27,9 +27,13 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/genutil"
 	genutilcli "github.com/cosmos/cosmos-sdk/x/genutil/client/cli"
 	genutiltest "github.com/cosmos/cosmos-sdk/x/genutil/client/testutil"
+	"github.com/cosmos/cosmos-sdk/x/staking"
 )
 
-var testMbm = module.NewBasicManager(genutil.AppModuleBasic{})
+var testMbm = module.NewBasicManager(
+	staking.AppModuleBasic{},
+	genutil.AppModuleBasic{},
+)
 
 func TestInitCmd(t *testing.T) {
 	tests := []struct {
@@ -137,7 +141,11 @@ func TestInitStakingBondDenom(t *testing.T) {
 
 	cmd := genutilcli.InitCmd(testMbm, home)
 
-	cmd.SetArgs([]string{"appnode-test", fmt.Sprintf("--%s=%s --%s=testtoken", cli.HomeFlag, home, genutilcli.FlagStakingBondDenom)})
+	cmd.SetArgs([]string{
+		"appnode-test",
+		fmt.Sprintf("--%s=%s", cli.HomeFlag, home),
+		fmt.Sprintf("--%s=testtoken", genutilcli.FlagStakingBondDenom),
+	})
 	require.NoError(t, cmd.ExecuteContext(ctx))
 }