Bitwise Asset Management has submitted a proposal to launch an exchange-traded fund that will hold and track the native token of the crypto oracle platform Chainlink.
A filing with the US Securities and Exchange Commission on Tuesday indicates that the fund will be known as the Bitwise Chainlink ETF, with Coinbase Custody designated as the custodian.
The ETF is designed to hold and facilitate in-kind creation and redemption for Chainlink (LINK), enabling investors to buy and sell shares using the LINK token.
Bitwise has not revealed the ticker symbol, the exchange for its ETF listing, or the fees it plans to charge.
This marks the first ETF application in the US to track Chainlink. Bitwise has submitted a Form S-1 for the fund, but must provide additional paperwork, referred to as Form 19b-4, to initiate the SEC’s approval process.
LINK sees gains following ETF filing
The price of LINK increased by 4.2% to $24.18 within the past 24 hours, spurred by Bitwise’s filing and a general market upswing, according to CoinGecko.
LINK has risen more than 26% over the past 30 days, though it remains substantially lower than its peak of nearly $53 in May 2021.
Increased interest in altcoin ETFs
The Trump administration has adopted a more favorable stance on crypto, prompting fund issuers to inundate the SEC with applications for various crypto-linked ETFs.
Bitwise has experienced success with its ETFs that track Bitcoin (BTC) and Ether (ETH), which currently hold assets of $2.26 billion and $460 million, respectively, according to Farside Investors.
On Saturday, asset manager VanEck filed with the SEC to introduce an ETF based on JitoSOL, a liquid staking token that offers staking rewards. If approved, this would be the first ETF in the US to enable investment in digital assets that generate staking rewards.
Related: ETF analyst raises questions about how Canary’s TRUMP fund ‘makes it through’
On Friday, Grayscale Investments sought the SEC’s permission to transition its existing trust based on Avalanche (AVAX) into an ETF.
Additionally, Canary Capital has introduced two ETF product offerings this month, with its filing on Tuesday aimed at launching an ETF that holds Official Trump (TRUMP), which US President Donald Trump initiated just days before his inauguration.
Its second ETF application filed on Friday was for the Canary American-Made Crypto ETF (MRCA), which intends to offer exposure to a collection of cryptocurrencies that were created, mined, or operate within the US.
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