Chainlink’s native cryptocurrency, LINK, saw an increase of 8% on Tuesday, reaching $13.06, following the introduction of a Grayscale exchange-traded fund (ETF) associated with the asset.
This ETF, trading under the symbol GLNK, offers investors regulated access to Chainlink via traditional brokerage accounts. It marks the first ETF in the U.S. designed specifically to track LINK, the token that powers Chainlink’s decentralized oracle network.
Chainlink is crucial for enabling interactions between blockchain systems and real-world data. Its network inputs offchain information—such as weather data, pricing information, and election outcomes—into smart contracts, allowing decentralized applications to react to actual events.
Furthermore, it facilitates communication between disparate blockchains, enabling the transfer of data and value across networks that may not otherwise connect. This capability has established it as a fundamental player in decentralized finance (DeFi), NFTs, gaming, and other onchain markets, securing tens of billions of dollars in value, as noted by Grayscale in a press release.
However, the ETF does not provide a direct investment in LINK. Instead, GLNK holds LINK shares for its investors and does not comply with the Investment Company Act of 1940, meaning it lacks some consumer protections typical of traditional ETFs and mutual funds.
The rise in LINK’s value follows a significant selloff this year. The token has experienced a 39% decline since early January, reflecting broader losses across the cryptocurrency market.
Grayscale initially launched the fund as a private offering in 2021 and transitioned it to OTC Markets in 2022. Its listing on NYSE Arca makes it more accessible to both institutional and retail investors.
