Bitwise Introduces Chainlink ETF with In-Kind Creation and Redemption Mechanism

According to a recent SEC filing, Bitwise is looking to introduce a Chainlink ETF that will directly hold LINK, the native token of the oracle network.

While the filing does not yet specify a ticker, it confirms that the tokens backing the shares will be held with Coinbase Custody Trust Company, a custodian for many of the largest U.S.-listed crypto ETFs, including BlackRock’s iShares Bitcoin Trust and iShares Ethereum Trust.

This ETF will permit in-kind creation and redemption, allowing investors to acquire shares with LINK and receive tokens upon selling their shares. Recently, the SEC has started permitting crypto ETF issuers to provide in-kind creation and redemption.

In recent months, Bitwise has also applied for ETFs that would track Solana, XRP, Dogecoin, and Aptos. Its Bitcoin and Ethereum ETFs have attracted $2.2 billion and $461 million in net inflows, respectively.

Decrypt attempted to reach out to Chainlink Labs and Bitwise, but has not yet received a response.

Although LINK reached a peak of $24.70 early Tuesday, it has since lost momentum, trading at $24.27, a 1.1% decrease from the previous day, as reported by price aggregator CoinGecko.

Trading volume has dropped by 14.3% over the past day to $3.8 billion, according to Coinglass, while open interest in futures or options contracts has declined by 5% in the last 24 hours to $1.7 billion.

The broader crypto market is experiencing a downturn. Earlier today, Bitcoin fell below $110,000 amid issues at the Federal Reserve. At present, Bitcoin is hovering around

In a report shared with Decrypt earlier this month, venture capital firm M31’s David Attermann discussed his bullish outlook for LINK, highlighting that “Chainlink’s presence within banks, market infrastructure, and leading crypto protocols leads to high switching costs and potential for considerable revenue.”