Bitwise Asset Management has filed to introduce an exchange-traded fund that will hold and track the native token of the crypto oracle platform Chainlink.
A filing submitted to the US Securities and Exchange Commission on Tuesday indicates that the fund will trade as the Bitwise Chainlink ETF, with Coinbase Custody designated as the custodian.
The ETF intends to hold and facilitate in-kind creation and redemption for Chainlink (LINK), enabling investors to transact in shares using the LINK token.
Bitwise has not indicated the ticker symbol, the exchange for the ETF listing, or the fee structure.
This marks the first ETF application for tracking Chainlink in the US. Bitwise has filed a Form S-1 for the fund, but further documentation, specifically a Form 19b-4, will be required to initiate the SEC’s approval process.
LINK rises on ETF filing
The price of LINK increased by 4.2% to $24.18 in the past 24 hours, spurred by Bitwise’s filing and broader market trends, as reported by CoinGecko.
LINK has appreciated more than 26% over the past month, yet remains significantly below its peak of nearly $53 in May 2021.
Growing interest in altcoin ETFs
The current administration has adopted a more favorable stance towards cryptocurrencies, prompting a surge of filings for various crypto-linked ETFs directed to the SEC.
Bitwise has experienced success with its ETFs that track Bitcoin (BTC) and Ether (ETH), with corresponding assets under management amounting to $2.26 billion and $460 million, as per Farside Investors.
Recently, on Saturday, asset manager VanEck submitted a filing with the SEC for an ETF that is based on JitoSOL, a liquid staking token offering staking rewards. If approved, this would be the first ETF in the US enabling investors to engage with digital assets that deliver staking rewards.
Related: ETF analyst questions how Canary’s TRUMP fund ‘gets through’
On Friday, Grayscale Investments requested SEC approval to transform its current trust based on Avalanche (AVAX) into an ETF.
Simultaneously, Canary Capital has introduced two ETF product filings this month, seeking to launch an ETF that holds Official Trump (TRUMP), a token introduced by US President Donald Trump shortly before his inauguration.
Its second ETF submission made on Friday was for the Canary American-Made Crypto ETF (MRCA), aimed at providing exposure to a selection of cryptocurrencies created, mined, or operated within the US.
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