Bitcoin News Today: Chainlink's Leap: ETF Filing Challenges SEC's Altcoin Hesitation

Bitwise Asset Management has taken the first step toward launching a spot Chainlink (LINK) exchange-traded fund in the United States, filing the necessary documentation with the Securities and Exchange Commission (SEC). The proposed fund, known as the Bitwise Chainlink ETF, will track the native token of the Chainlink oracle network, which is used to connect smart contracts with external data sources. This filing marks the first instance of an ETF focused on Chainlink being submitted for approval in the U.S. [1]

The SEC filing includes details such as the fund’s custodian, Coinbase Custody, which is already used by major crypto ETFs like the iShares Bitcoin Trust and iShares Ethereum Trust. The proposed ETF will support in-kind creation and redemption mechanisms, allowing investors to exchange shares for LINK tokens and vice versa. This feature aligns with recent regulatory shifts that have allowed such models for crypto ETFs, potentially reducing market impact and enhancing liquidity [2].

Bitwise has not yet disclosed the ticker symbol, the intended listing exchange, or the management fee for the ETF. However, the firm has previously demonstrated success in the crypto ETF space. Its Bitcoin and Ethereum ETFs currently have assets under management of $2.26 billion and $460 million, respectively, as of recent data [1]. This filing adds to a growing list of crypto-related ETFs being submitted by various asset managers, reflecting increasing institutional interest in the sector.

The filing appears to have had a positive impact on the price of LINK. In the 24 hours following the announcement, the token rose by 4.2% to $24.18, according to CoinGecko. Over the past 30 days, LINK has surged by more than 26%, although it remains significantly below its peak of nearly $53 in May 2021. The broader crypto market has also seen recent gains, though Bitcoin’s price dipped below $110,000 amid uncertainty surrounding the Federal Reserve’s monetary policy [2].

Bitwise’s filing comes amid a broader trend of increased regulatory openness to crypto products, particularly under the Trump administration. This has prompted other asset managers to submit a variety of crypto-linked ETF proposals. For example, VanEck filed for an ETF based on JitoSOL, a liquid staking token, which, if approved, would be the first U.S. ETF to include staking rewards. Grayscale Investments also recently sought SEC approval to convert its Avalanche (AVAX) trust into an ETF. Meanwhile, Canary Capital has filed for multiple ETFs, including one tied to a token created by U.S. President Donald Trump and another focused on U.S.-based cryptocurrencies [1].

The Chainlink ETF filing highlights the growing interest in altcoins within the ETF space, particularly as firms seek to diversify their offerings beyond Bitcoin and Ethereum. Analysts have noted that Chainlink’s integration into major financial infrastructure and blockchain protocols could drive long-term demand for the asset. However, approval is not guaranteed, as the SEC has historically been cautious in approving spot crypto ETFs, particularly for non-Bitcoin tokens [2].

Source:

[1] Bitwise first in line to file for spot Chainlink ETF (https://cointelegraph.com/news/bitwise-first-in-line-to-file-for-spot-chainlink-etf)

[2] Bitwise Files for Chainlink ETF With In-Kind Creation and (https://finance.yahoo.com/news/bitwise-files-chainlink-etf-kind-165536862.html)