Bitcoin News Today: A Chainlink ETF Could Signal Regulators’ New Trust in Crypto Infrastructure

Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) for approval to launch a spot exchange-traded fund (ETF) focused on Chainlink (LINK), the token underpinning the decentralized oracle network. The proposed fund, the Bitwise Chainlink ETF, is designed to hold LINK tokens in custody with Coinbase Custody Trust Company and track the CME CF Chainlink-Dollar Reference Rate, mirroring the structure of recently approved Bitcoin and Ethereum ETFs. This filing marks a significant development in the expansion of single-token crypto ETFs in the United States, following regulatory approvals for major cryptocurrencies [1].

The structure of the proposed ETF allows for in-kind and cash share creation, offering institutional investors greater flexibility in portfolio management. This feature is particularly notable as it reflects a growing institutional interest in crypto assets and signals that the SEC may be treating Chainlink with the same regulatory approach as larger cryptocurrencies like Bitcoin and Ethereum [2]. The 100% exposure to LINK, combined with a transparent custody structure and a fee model that includes the potential for temporary fee waivers, could simplify the SEC’s review process [2].

Chainlink’s role in decentralized finance (DeFi) and cross-chain infrastructure has grown significantly since its launch in 2019. The protocol now supports thousands of projects and provides essential services such as decentralized data feeds, verifiable randomness, and tools for cross-blockchain asset transfers. These functions position LINK as a key infrastructure token in the crypto ecosystem, with approximately 68% of DeFi’s total value currently underpinned by Chainlink’s services [2]. The U.S. launch of a Chainlink ETF could further institutionalize the token by allowing traditional investors to access LINK exposure through standard brokerage accounts, reducing barriers related to custody and compliance [2].

The filing also highlights a broader industry trend toward the approval of single-asset spot ETFs beyond Bitcoin and Ethereum. If approved, the Chainlink ETF would be one of the first U.S. ETFs to focus on an oracle network’s native token, following the recent approvals of major crypto ETFs. Bitwise is also awaiting decisions on other proposed crypto ETFs tied to XRP, Solana, Dogecoin, and Aptos, indicating the company’s aggressive strategy to diversify its crypto ETF offerings [1].

While the SEC’s review will be a critical determinant of the ETF’s fate, the filing underscores the growing regulatory clarity around certain crypto assets. This clarity has already led to the launch of similar products in Europe, where 21Shares and VanEck have introduced Chainlink-based exchange-traded products. The U.S. market, however, represents a significantly larger opportunity, with crypto ETFs globally attracting nearly $30 billion in inflows this year and managing over $150 billion in assets [2]. The approval of a Chainlink ETF could further accelerate the flow of institutional capital into the crypto market, particularly as LINK continues to secure a critical role in DeFi infrastructure.

Source:

[1] Bitwise files S-1 for Chainlink LINK ETF, first in US (https://cryptobriefing.com/chainlink-link-etf-bitwise-filing/)

[2] Bitwise Files First Chainlink ETF With SEC Review Underway (https://coinfomania.com/bitwise-files-first-chainlink-etf-with-sec-review-underway/)

[3] Crypto staking ETF launch strategy prioritizes centralized... (https://cryptoslate.com/crypto-staking-etf-launch-strategy-prioritizes-centralized-partners-over-immediate-defi-adoption/)