Bitcoin News Today: Institutional Confidence Rises as Bitwise Seeks First U.S. Chainlink ETF

Bitwise Asset Management has filed for a spot-based exchange-traded fund (ETF) focused on Chainlink's (LINK) native token, marking a potential milestone as the first U.S. fund to directly hold the asset. The ETF, outlined in a Form S-1 submission to the U.S. Securities and Exchange Commission (SEC), aims to provide investors with direct exposure to LINK, the native token of the decentralized oracle network. Coinbase Custody has been named as the custodian for the tokens, aligning with the custodial arrangements used by major U.S. crypto ETFs such as the iShares Bitcoin Trust and iShares Ethereum Trust[2].

The filing introduces in-kind creation and redemption mechanisms, enabling investors to transact using LINK tokens rather than cash. This feature aligns with recent SEC developments that allow crypto ETFs to adopt such structures. Bitwise has also previously filed for ETFs targeting Solana, XRP, Dogecoin, and Aptos, with its Bitcoin and Ethereum ETFs attracting over $2.2 billion and $461 million in net inflows, respectively[2].

Following the filing, LINK experienced a 5% price rebound from overnight lows, reaching $24.54 during a short-lived rally between 10:00 and 11:00 UTC. Despite this, the token remained under bearish pressure, trading below its 24-hour high of $24.81 and facing a trading range of $1.84 between $22.90 and $24.81. Technical analysis from CoinDesk Research suggested that the token’s ability to reclaim the $24.00 level is critical to halting further downward momentum[1]. The token is currently trading at $24.27, down 1.1% from the prior 24-hour period[2].

The broader cryptocurrency market exhibited signs of consolidation, with trading volume dipping 14.3% to $3.8 billion and open interest falling 5% to $1.7 billion over the same period[2]. Meanwhile, Bitcoin fell below $110,000 amid uncertainty around Federal Reserve policy, highlighting the broader market volatility affecting altcoins like LINK[2]. Despite the recent price recovery, LINK is still over 50% below its all-time high of nearly $53 reached in May 2021[3].

The filing aligns with a broader shift in the U.S. regulatory environment, where the Trump administration has shown a more favorable stance toward crypto assets. This regulatory shift has encouraged multiple firms to submit ETF proposals, including VanEck’s JitoSOL-linked offering and Grayscale’s application to convert its Avalanche (AVAX) trust into an ETF. Canary Capital has also filed proposals for two new crypto-linked ETFs, including one targeting U.S.-based cryptocurrencies and another linked to the Official Trump (TRUMP) token, signaling a growing appetite for diversified crypto exposure[3].

LINK’s price action and the launch of the Bitwise ETF reflect increasing institutional interest in altcoin exposure. Analysts from M31 Capital have highlighted Chainlink’s growing presence in traditional financial infrastructure and crypto protocols as a potential catalyst for long-term value[2]. However, the price remains in a critical consolidation phase, with key technical levels at $24.00 acting as a psychological barrier and $23.00 as a potential floor for further bearish movement[1].

Source:

[1] Chainlink Price News: 5% Bounce on Spot LINK ETF Filing ... (https://www.coindesk.com/markets/2025/08/26/bitwise-files-to-launch-a-spot-chainlink-etf-link-bounces-5)

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

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