Bitcoin News Today: Bitwise Targets Institutional Trust with Chainlink ETF Push

Bitwise Asset Management, a leading provider of cryptocurrency investment products, has submitted a formal application to launch a spot exchange-traded fund (ETF) backed by Chainlink ($LINK), marking a new expansion beyond its existing Bitcoin and Ethereum offerings. The proposed ETF aims to give investors direct exposure to the token, which is widely used for decentralized oracle services in the blockchain ecosystem. This development reflects the growing demand for diversified crypto investment vehicles and the maturation of the regulatory landscape for digital assets [1]. The approval process is currently in progress, with industry observers highlighting the potential for increased traction in 2025 as more institutional and retail investors seek crypto exposure through regulated avenues [1].

Bitwise already manages a successful Bitcoin-focused ETF known as BITB, which has seen substantial inflows and a growing asset base. As of recent data, BITB holds $4.51 billion in assets under management and has an expense ratio of 0.2%. The fund has demonstrated strong performance metrics, including a 73.14% increase in value over the past year and a 14.71% year-to-date gain. BITB tracks the price of Bitcoin closely and provides a convenient and regulated way for investors to gain exposure without the need for direct custody of the digital asset [3]. The ETF trades on the ARCX platform and has shown consistent trading activity, with a 10-day average volume of $913,320 and a total net inflow of $2.28 billion since its inception in January 2024 [3].

The launch of a Chainlink-backed ETF aligns with Bitwise’s broader strategy to offer a suite of crypto-related investment products. The firm has built a reputation over the past seven years for managing institutional-grade crypto portfolios, leveraging its team of over 90 specialists who focus exclusively on digital assets. By expanding into Chainlink, Bitwise aims to address the increasing demand for exposure to alternative cryptocurrencies that have established use cases and strong network fundamentals [3]. This move is also a strategic response to broader trends in the market, as investors seek to diversify their digital asset holdings beyond the dominant Bitcoin and Ethereum.

Chainlink has gained significant traction in the decentralized finance (DeFi) and smart contract ecosystems, serving as a critical infrastructure layer for connecting blockchain systems with real-world data. The token’s adoption by major enterprises and integration into numerous decentralized applications has contributed to its growing relevance in the crypto space. The proposed ETF would offer investors a straightforward and transparent way to gain exposure to this asset, leveraging Bitwise’s expertise in crypto fund management [1]. This development is expected to attract both retail and institutional investors who are looking for regulated products that reflect the broader crypto market.

Industry observers have noted that the approval of such ETFs could further legitimize the crypto asset class and encourage broader adoption. With growing regulatory clarity and increasing demand from investors, the market for crypto ETFs is expected to expand significantly in the coming months. The launch of a Chainlink-backed ETF by Bitwise is a key milestone in this trajectory, demonstrating the ongoing innovation in the digital asset investment space.

Source:

[1] Bitwise Files for $LINK Spot ETF (https://coinpedia.org/crypto-live-news/bitwise-files-for-link-spot-etf/)

[2] Bitwise Bitcoin Standard Corporations ETF (OWNB) (https://www.nasdaq.com/market-activity/etf/ownb)

[3] Bitwise Bitcoin ETF | What is BITB? (https://www.bitget.com/price/bitcoin/etf/bitb)