Grayscale Aims to Turn Chainlink Trust into First U.S. ETF

Grayscale Investments has submitted a formal application to the U.S. Securities and Exchange Commission (SEC) to convert its existing Chainlink Trust into a spot exchange-traded fund (ETF), a move that could significantly enhance institutional and retail investor access to the Chainlink (LINK) token. The proposed ETF, if approved, would trade on the NYSE Arca under the ticker symbol GLNK. This filing represents a critical step in Grayscale’s broader strategy to transform multiple crypto trusts into ETF structures, with additional pending applications for Solana (SOL), Dogecoin (DOGE), and XRP. The S-1 registration statement, a key requirement for ETF approval, outlines the structure and potential features of the fund, including a possible staking mechanism.

The proposed Chainlink ETF would allow third-party staking providers to stake the LINK tokens held in custodian wallets, depending on future regulatory guidance. Staking rewards could either be retained by the fund, distributed to shareholders, or used to cover operational expenses. This feature, if permitted, could differentiate the GLNK ETF from most existing U.S. crypto ETFs, which typically lack an income-generating component. The current Chainlink Trust, which has been operational since February 2026, currently manages approximately $29 million in assets and would serve as the foundation for the new ETF structure.

Grayscale’s filing also highlights that the ETF would facilitate share creations and redemptions in cash, mirroring the model used by recently approved spot Bitcoin and Ethereum ETFs. However, the firm has also included a provision for in-kind redemptions, should future regulations allow such a model. The custodian for the proposed ETF would be the Coinbase Custody Trust Company, a move that aligns with the company’s broader partnerships in the crypto asset management space.

Market reaction to the filing has been positive, with the LINK token rising 3% over the past 24 hours, outpacing gains in other major cryptocurrencies such as XRP (+2.6%), Solana (+5%), and Dogecoin (+7.4%). Analysts suggest that the optimism surrounding the filing could be driven by expectations of increased liquidity and regulatory clarity for the Chainlink token, especially if the ETF is approved.

The broader implications of the filing extend beyond Grayscale. The SEC, under Chair Paul Atkins, has yet to approve or reject any of the pending applications for crypto ETFs, but the continued filings indicate a growing confidence among asset managers in the potential for approval. If the GLNK ETF is approved, it would mark the first-ever U.S.-listed Chainlink ETF and could set a precedent for similar products in the space. The proposed fund would offer regulated exposure to a token that plays a critical role in blockchain infrastructure, particularly in providing decentralized data feeds for smart contracts.