Bitcoin News Today: "Bitwise Challenges SEC with First U.S. Spot LINK ETF Filing"

Bitwise Asset Management has become the first firm to file for a U.S. spot exchange-traded fund (ETF) focused on Chainlink’s native token, LINK. The ETF, outlined in an S-1 registration statement with the U.S. Securities and Exchange Commission, aims to provide investors with direct exposure to LINK by holding the token directly. Coinbase Custody Trust Company has been named as the custodian for the fund, aligning with the custodial structure used by major crypto ETFs such as the iShares Bitcoin Trust and iShares Ethereum Trust [1]. This filing marks a significant development in the evolving landscape of crypto investment products, as it is the first of its kind targeting an oracle network token in the U.S.

The structure of the Bitwise Chainlink ETF closely mirrors that of Bitcoin and Ethereum ETFs, with shares redeemable in cash or kind, and a Net Asset Value (NAV) tied to the CME CF Chainlink–Dollar Reference Rate [2]. The fund is structured as a Delaware statutory trust and would list shares on a U.S. national exchange, though the specific exchange and ticker symbol remain undisclosed [1]. The ETF’s proposed in-kind creation and redemption mechanisms allow for greater flexibility in trading, enabling investors to buy or redeem shares using LINK or U.S. dollars. This approach aligns with recent regulatory developments permitting crypto ETF issuers to offer such mechanisms [4].

Market reaction to the filing has been mixed. Following the announcement, Chainlink’s price rebounded approximately 5% from overnight lows, reaching as high as $24.81. However, it remains under bearish pressure, trading below its 24-hour peak and within a $1.84 range. Technical analysis suggests that the token needs to reclaim the $24.00 level to reverse the downward trend, with strong resistance observed around $24.30 [5]. Trading volume surged to 6.58 million units during the filing period, significantly above the 2.29 million average, indicating heightened market participation. Despite the rebound, LINK is still down nearly 50% from its 2021 peak of $53 and has lost 1.6% over the past 24 hours [1].

The filing fits into a broader trend of growing institutional interest in altcoins, driven by a more favorable regulatory environment under the Trump administration. Bitwise has previously seen success with its Bitcoin and Ethereum ETFs, which have attracted $2.2 billion and $461 million in net inflows, respectively [1]. The firm has also submitted applications for ETFs tracking Solana, XRP, Dogecoin, and Aptos, signaling a strategic push to expand its crypto product lineup [4]. Other industry players are similarly moving into altcoin-focused products, including VanEck’s proposed JitoSOL ETF and Grayscale’s application to convert its Avalanche (AVAX) trust into a spot ETF [3].

If approved, the Bitwise Chainlink ETF could catalyze further institutional adoption of altcoins in the U.S., a market significantly larger than Europe’s current LINK ETP offerings. Europe already has products like 21Shares’ Chainlink ETP, which holds $49.5 million in assets under management [4]. A U.S.-listed ETF, however, could unlock a new wave of capital for LINK, particularly as tokenomics and increased whale activity begin to create a supply squeeze, potentially amplifying the impact of each institutional investment [2].

The filing also highlights regulatory uncertainty surrounding altcoin ETFs. While the structure of the Bitwise Chainlink ETF is designed to mirror existing crypto ETFs, the SEC has not yet provided a clear pathway for approval. By omitting staking and focusing solely on spot price exposure, Bitwise appears to be simplifying the product to improve its chances of regulatory acceptance [6]. The outcome of this filing may set a precedent for future altcoin ETFs, influencing whether similar products gain traction in the U.S. market.

Source:

[1] Bitwise Files to Launch a Spot Chainlink ETF, LINK Bounces 5% (https://finance.yahoo.com/news/bitwise-files-launch-spot-chainlink-131406803.html)

[2] Bitwise Submits S-1 Filing to US SEC for Spot Chainlink ETF (https://finance.yahoo.com/news/bitwise-submits-1-filing-us-153229829.html)

[3] Bitwise first in line to file for spot Chainlink ETF (https://cointelegraph.com/news/bitwise-first-in-line-to-file-for-spot-chainlink-etf)

[4] Bitwise Files for First U.S. Spot Chainlink ETF (https://coinpaper.com/10732/is-chainlink-about-to-go-mainstream-bitwise-files-for-first-u-s-spot-etf)

[5] JUST IN: Bitwise Files for First-Ever Chainlink Spot ETF (https://coinpedia.org/news/just-in-bitwise-files-for-first-ever-chainlink-spot-etf/)

[6] Bitwise Files for Chainlink ETF With In-Kind Creation and ... (https://finance.yahoo.com/news/bitwise-files-chainlink-etf-kind-165536862.html)