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Key Highlights
- Bitwise has filed with the SEC to introduce the first U.S. spot Chainlink ETF
- The ETF aims to invest directly in LINK and will utilize Coinbase Custody
- Chainlink saw a rise of 2.3% following the announcement of the ETF filing
Bitwise Submits Proposal for First U.S. Spot Chainlink ETF
Bitwise has filed a proposal with the U.S. SEC for a Chainlink (LINK) spot ETF, marking the first of its kind in the U.S. market. This action indicates increasing institutional interest in Chainlink and altcoins, coinciding with a shift in regulatory attitudes towards crypto-related financial products.
The filing reveals that the Bitwise Chainlink ETF will invest directly in LINK, providing investors with exposure to the token without requiring them to hold it personally. This structure qualifies it as a spot ETF, which is designed to mirror the actual price of Chainlink, rather than futures or derivatives.
Functionality of the ETF
The custodian for the fund will be Coinbase Custody Trust Company, with an undisclosed exchange serving as the primary agent. Shares of the fund will be bought and sold in cash, reflecting the process other spot ETFs utilize.
While the filing lacks specifics on staking, the SEC has previously indicated that staking activities may not inherently contravene securities regulations. This opens up possibilities for future developments.
Significantly, the name of the exchange and the product ticker are yet to be disclosed, but this has not quelled investor excitement.
Impact on LINK Price
In response to the announcement, Chainlink’s price increased by 4.02% on the daily chart.
Though modest, this price increase highlights optimism regarding enhanced institutional access to Chainlink through regulated investment options. Approval of this ETF could represent a significant advance in the asset’s progression.
In Europe, the 21Shares Chainlink ETP stands as the largest LINK-based fund with $49.5 million in assets under management.
Institutional interest in altcoins continues to rise. Recently, Grayscale Investments applied to convert its AVAX trust into a spot ETF, indicating a broader trend among asset managers preparing for a future that is more favorable to altcoins.
