US-based asset management company Bitwise Asset Management has taken a notable new step in the cryptocurrency market. The company announced plans to launch a spot ETF for Chainlink (LINK) in its S-1 filing with the United States Securities and Exchange Commission (SEC). This development is a critical milestone, particularly given the recent approval of Bitcoin and Ethereum ETFs, which have led to the emergence of altcoin-focused exchange-traded funds.
ETF Structure and Details
According to the filing, the Bitwise Chainlink ETF will track the spot price of LINK, and the assets will be held directly through Coinbase Custody Trust Company. Coinbase, Inc. will serve as the primary intermediary in executing the transactions. The ETF's shares will be traded on a national exchange in the US, but the listing platform has not yet been announced.
The fund will offer both cash and a crypto-based creation and redemption mechanism through a process called "Trust-Directed Trade." This aims to provide investors with greater flexibility in portfolio management. Another noteworthy point is that, despite the SEC's statements last May, the filing contains no plans for staking. As you may recall, the SEC stated that staking in proof-of-stake networks is not considered a security transaction. However, Bitwise's ETF structure focuses solely on reflecting the price of LINK; this means investors will not receive returns such as staking rewards or validator participation.
Chainlink's Role in the Crypto Ecosystem
Launched in 2019, Chainlink operates as a decentralized oracle network connecting blockchains with real-world data. This system, which allows smart contracts to receive reliable data from the outside world, such as prices, weather, and election results, has a wide range of applications, from DeFi and NFTs to gaming and enterprise blockchain solutions.
The LINK token is used to incentivize validators on the network, ensure data reliability, and support governance processes. Today, Chainlink has become a major infrastructure player not only in the crypto but also in the traditional financial world, collaborating with major institutions such as Swift, UBS, and the Brazilian Central Bank.
Market Impact and Institutional Interest
Bitwise's Chainlink ETF application will be one of the first ETFs based on oracle networks in the US market. While companies like 21Shares and VanEck already have LINK-focused ETP products in Europe, this move is largely a first in the US.
Globally, crypto ETFs have attracted nearly $30 billion in investment by 2025. In this context, the listing of an infrastructure-focused project like Chainlink in the US could open the door to significant institutional capital flowing to LINK. Analysts believe that the approval of such a product would have a significant impact not only on the price but also on LINK's legitimacy and influence within the ecosystem.
Latest on LINK Price
As of this writing, Chainlink (LINK) is trading at $23.51. LINK, which has traded between $22.94 and $24.70 over the past 24 hours, is the 13th-largest crypto asset, according to market data. While the price is down approximately 55% from its May 2021 peak of over $52, it has returned to the spotlight amid growing institutional interest.
