Bitcoin News Today: Bitwise Files First U.S. Spot ETF for Chainlink's LINK Token

Bitwise Asset Management has submitted a preliminary S-1 filing with the U.S. Securities and Exchange Commission (SEC) to launch the Bitwise Chainlink ETF, marking the first formal attempt to create a U.S.-listed spot ETF tracking the native token of the Chainlink (LINK) decentralized oracle network [1]. The fund is designed to reflect the market value of LINK through a regulated investment structure and will utilize standard creation and redemption mechanisms, including both in-kind and cash-based transactions [2]. Coinbase Custody Trust Company will act as custodian, while Coinbase Prime will manage execution for share creation and redemption [3].

The ETF filing does not include any plans for staking the LINK token, despite the SEC’s recent legal clarity on staking arrangements. Instead, it will provide direct exposure to the spot price of LINK without additional yield components [2]. This approach aligns with the structures of existing Bitcoin and Ethereum spot ETFs, which have seen significant institutional demand. If approved, the ETF would be listed on a U.S. national exchange, though the specific platform has not yet been disclosed [3].

Chainlink, a leading decentralized oracle network, plays a critical role in connecting blockchains with real-world data. The LINK token is essential for network governance and validator incentives, supporting over 68 percent of today’s decentralized finance (DeFi) infrastructure [3]. Bitwise CIO Matt Hougan has highlighted LINK as one of the strongest crypto assets aligned with the tokenization trend, further reinforcing the strategic rationale for this product [1].

The move reflects a broader industry trend toward diversifying the crypto ETF landscape beyond Bitcoin and Ethereum. Similar applications have recently been submitted by other major asset managers, including Franklin Templeton, WisdomTree, and 21Shares [4]. In Europe, 21Shares and VanEck already offer Chainlink-based ETPs, demonstrating existing demand for altcoin exposure among institutional investors [3].

The success of the Bitwise Chainlink ETF will depend largely on the SEC’s regulatory stance. While the agency has shown some openness toward crypto products, approval is not guaranteed. However, the ETF’s straightforward structure—100 percent exposure to LINK, a single custodian, and a potentially temporary fee waiver—could increase its chances of approval [3]. If approved, it may set a precedent for future altcoin ETFs, especially those tied to assets with strong institutional use cases and fundamentals.

A U.S.-listed Chainlink ETF could also simplify access for traditional investors by enabling exposure to altcoins through conventional brokerage platforms. This development would align with Chainlink’s ongoing efforts to establish partnerships with major financial institutions, such as UBS and the Central Bank of Brazil [3]. Bitwise’s filing thus represents not just a new product offering but a potential milestone in the evolution of crypto asset regulation and adoption in the United States.

Source:

[1] Bitcoin Sistemi (https://en.bitcoinsistemi.com/crypto-asset-management-company-bitwise-files-for-etf-for-rising-altcoin-details-here/)

[2] Coinpedia (https://coinpedia.org/news/just-in-bitwise-files-for-first-ever-chainlink-spot-etf/)

[3] Coinfomania (https://coinfomania.com/bitwise-files-first-chainlink-etf-with-sec-review-underway/)

[4] CryptoDnes.bg (https://cryptodnes.bg/en/news/altcoins/)