Bitcoin News Today: Bitwise Challenges SEC with First U.S. Spot LINK ETF, Could Shift Altcoin Investing

Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to launch the first spot-based exchange-traded fund (ETF) focused on Chainlink (LINK), the native token of the blockchain oracle platform. This filing, which came on August 26, 2025, marks a significant development in the expansion of crypto-backed ETFs in the United States and could attract institutional and retail investors seeking direct exposure to the token [1]. The proposed fund, known as the Bitwise Chainlink ETF, will hold and track the value of LINK directly, allowing investors to gain exposure without directly purchasing and holding the token on a decentralized exchange [4].

The structure of the ETF will include in-kind creation and redemption, meaning that investors can exchange LINK tokens for ETF shares and vice versa. This model is now permissible following recent regulatory shifts and mirrors the structures used by other successful crypto ETFs, such as those tracking Bitcoin and Ethereum [1]. Coinbase Custody Trust Company, a major custodian for U.S. crypto ETFs, has been designated to hold the underlying LINK tokens for the fund. This custodial arrangement aligns with those used by industry leaders like BlackRock and Farside Investors in their crypto ETF products [1].

The filing also includes a process for cash-based creation and redemption of shares, a method commonly used in the ETF industry to facilitate liquidity and trading. While the filing does not yet include a ticker symbol or specify the listing exchange, it indicates that the ETF will be launched on a U.S. national securities exchange once the SEC approves the application [4]. The next regulatory step for Bitwise will involve submitting a Form 19b-4 to initiate the official approval process [3].

The announcement triggered an immediate response in the Chainlink market. LINK’s price rose by approximately 4% in the 24 hours following the filing, reaching $24.18, according to CoinGecko. This price movement indicates growing institutional and investor interest in the token as a regulated investment vehicle [3]. While the broader cryptocurrency market remains in a consolidation phase, with Bitcoin and Ethereum under bearish pressure, the Chainlink ETF filing has offered a short-term bullish catalyst for the token. However, technical indicators suggest that for the upward momentum to continue, LINK must reclaim the $24.00 level, which is seen as a key psychological threshold [2].

The filing is part of a broader trend of asset managers seeking to expand the range of crypto-backed ETFs, particularly those focusing on alternative cryptocurrencies. Bitwise has previously launched successful ETFs tracking Bitcoin and Ethereum, which have attracted over $2.2 billion and $460 million in assets under management, respectively [1]. The firm has also filed for ETFs tracking Solana, XRP, and Dogecoin, reflecting a growing appetite among institutional investors for diversified exposure across the crypto asset class.

In-kind creation and redemption mechanisms have become an important feature of crypto ETFs, offering greater flexibility to investors and potentially reducing arbitrage risks. This move by Bitwise is consistent with the SEC’s recent regulatory guidance, which has allowed crypto ETF issuers to offer such features. The use of Coinbase Custody also aligns with best practices in the industry, providing a secure and transparent custody solution for digital assets.

The approval of the Bitwise Chainlink ETF could serve as a significant milestone for Chainlink and altcoins more broadly. It would represent the first regulated investment vehicle in the U.S. to provide direct exposure to LINK, potentially increasing the token’s institutional adoption and market liquidity. If approved, the ETF could also set a precedent for similar products targeting other altcoins, further diversifying the crypto investment landscape [4].

Source:

[1] Bitwise Files Chainlink ETF Kind (https://finance.yahoo.com/news/bitwise-files-chainlink-etf-kind-165536862.html)

[2] Chainlink Price News: 5% Bounce on Spot LINK ETF Filing (https://www.coindesk.com/markets/2025/08/26/bitwise-files-to-launch-a-spot-chainlink-etf-link-bounces-5)

[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] Chainlink Vs. XRP Battle Heats Up As Bitwise Files For (https://www.mitrade.com/insights/news/live-news/article-3-1073372-20250827)