Bitcoin News Today: Bitwise Files S-1 for First Chainlink ETF as Institutional Interest Grows

Bitwise Asset Management has submitted a registration with the U.S. Securities and Exchange Commission (SEC) for a spot Chainlink (LINK) exchange-traded fund (ETF), making it one of the first attempts to bring a single-token crypto ETF for Chainlink to U.S. markets [1][2]. The filing, which includes an S-1 statement, outlines the fund’s structure, indicating that it will hold the LINK token directly, with custody managed by Coinbase Custody Trust, and Coinbase, Inc. set to act as the primary trading agent [3]. Shares of the product are expected to debut on a national exchange, though the listing venue was not identified.

Unlike other token-based strategies, the proposed ETF avoids staking or validator rewards altogether, instead offering direct exposure to LINK’s spot value [3]. The filing also details mechanisms for both cash and in-kind redemptions, relying on a “Trust-Directed Trade” system facilitated by Coinbase to create and retire shares [3]. This straightforward design aligns with recent SEC guidance, which clarified that staking is not a securities law violation, although the registration statement opts for the simplest approach to mitigate regulatory uncertainty.

Chainlink’s role as the leading oracle network—delivering real-world data like prices and events to blockchains—makes LINK a candidate that appeals to institutions seeking diversified exposure beyond Bitcoin and Ethereum [2]. The protocol acts as the connective tissue between smart contracts and external information, powering services from lending protocols to derivatives platforms. LINK tokens secure the network through proof-of-stake and incentivize node operators that provide the feeds [2].

Bitwise CIO Matt Hougan has previously highlighted Chainlink as a standout bet on the future of tokenization, describing LINK as one of the “cleanest” crypto plays in a July research note [2]. His view is that as real-world assets move onchain, Chainlink’s middleware will form the backbone of that transition. The submission of this application signals renewed interest from institutional players and traditional financial institutions in the broader crypto ecosystem. The timing is notable, as several market observers suggest that the approval of such a product could further accelerate the flow of institutional capital into the crypto space [5].

Bitwise’s latest effort is part of an ongoing trend where crypto-focused asset managers are seeking to capitalize on growing demand for token-specific investment products. In recent months, several firms have filed similar applications for ETFs tied to various crypto assets, reflecting a broader industry push to make digital assets more accessible to traditional investors [6]. The potential approval of a Chainlink ETF could also serve as a litmus test for the SEC’s evolving stance on crypto investment products, especially in the context of recent debates over the classification of digital assets and the appropriate regulatory framework for their trading [1].

The proposed ETF is expected to offer investors direct exposure to the price movements of the LINK token without the need for direct custody or technical expertise, making it an appealing option for those looking to diversify their crypto holdings [3]. This is particularly relevant in a market environment where alternative cryptocurrencies are playing an increasingly important role in reinforcing the broader crypto ecosystem [7]. While no timeline has been provided for potential approval or launch, the mere submission of the S-1 filing has already generated significant interest among market participants, with some observers suggesting that it could trigger a broader wave of similar filings from other asset managers [3].

As the SEC processes the application, the crypto market will be closely watching for any signs of regulatory progress. The approval or rejection of Bitwise’s Chainlink ETF could have ripple effects across the industry, influencing not only the availability of crypto-based investment products but also the overall perception of digital assets as legitimate investment vehicles [2].

Source:

[1] Coindoo (https://coindoo.com/wall-street-eyes-chainlink-bitwise-pushes-for-first-link-etf/)

[2] ICOBench.com (https://icobench.com/news/chainlink-could-get-its-first-etf-as-bitwise-submits-sec-filing/)

[3] The Coin Republic (https://www.thecoinrepublic.com/2025/08/26/bitwise-files-s-1-statement-for-chainlink-etf-link-recovery-path-defined/)

[4] Reddit · r/CryptoCurrency (https://www.reddit.com/r/CryptoCurrency/comments/1n0j44q/bitwise_files_to_launch_a_spot_chainlink_etf_in/)

[5] AInvest (https://www.ainvest.com/news/bitcoin-news-today-chainlink-etf-signal-regulators-trust-crypto-infrastructure-2508/)

[6] The Block (https://www.theblock.co/category/markets/572)

[7] CoinCentral (https://coincentral.com/stagflation-looms-bitcoin-reverses-the-best-crypto-to-buy-now/)