Bitcoin News Today: Institutional On-Ramp: How a Chainlink ETF Could Reshape Crypto Investing

Bitwise Asset Management has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot-based exchange-traded fund (ETF) for Chainlink’s native token, LINK. This would mark the first U.S. ETF directly exposed to Chainlink’s token, following recent approvals for Bitcoin and Ethereum ETFs. The filing details that the ETF will be structured as a Delaware statutory trust, with Coinbase Custody Trust Company designated as the custodian for the tokens [1].

According to the filing, the ETF will track the CME CF Chainlink–Dollar Reference Rate and will not involve staking or yield generation, simplifying regulatory compliance. The structure allows for in-kind creation and redemption of shares, a feature recently permitted by the SEC for crypto ETPs, aligning the product more closely with traditional commodity ETFs [2]. This regulatory flexibility may improve the product's chances of approval and streamline operational efficiency compared to earlier crypto ETF proposals.

The filing is part of a broader trend of asset managers pursuing altcoin-focused ETFs as the crypto market stabilizes and regulatory clarity improves. Bitwise previously launched successful Bitcoin and Ethereum ETFs, which have attracted over $2.6 billion in net inflows. With this new Chainlink ETF, the firm aims to expand access to alternative crypto assets for institutional and retail investors through a regulated and liquid vehicle [3].

Following the news, LINK experienced a 5% price rebound from overnight lows on August 26. While the token’s price remained under bearish pressure in the broader market, the move reflected short-term optimism among traders. On-chain data also highlighted a significant decline in exchange-held LINK supply, reaching an all-time low. This trend suggests increased accumulation by long-term holders and reduced selling pressure, potentially supporting a broader bullish narrative [4].

Technical analysis of LINK’s price movement showed the token consolidating near $23.68, with key support at $23.00 and resistance around $24.30. Despite the recent rebound, CoinDesk Research noted continued bearish momentum in the short term, with a break below $23.40 signaling further downside risks. However, some analysts believe that if the ETF gains traction similar to Bitcoin and Ethereum products, it could attract billions in institutional inflows, potentially propelling LINK toward $100 over time [5].

The ETF filing also aligns with Chainlink’s growing adoption in the blockchain ecosystem. Recent partnerships, such as its collaboration with Japan’s SBI Holdings, highlight the project’s expanding influence in financial applications. Analysts argue that Chainlink’s role as a critical infrastructure provider—supplying data feeds to smart contracts and decentralized finance protocols—positions it for long-term institutional adoption [6].

While the SEC has yet to approve the ETF, the filing has already generated market activity and speculation. If approved, the product would offer a new on-ramp for investors to participate in Chainlink’s price action without directly managing wallets or exchanges. This could reduce price volatility by increasing liquidity and enabling arbitrage between the ETF and underlying asset [7].

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] Chainlink Price Prediction: Can Chainlink's ETF Push (https://cryptoticker.io/en/link-price-prediction-can-chainlinks-etf-push-link-toward-dollar100/)

[4] Why LINK's Supply Plunge Could Be Huge for Bulls (https://cryptoadventure.com/why-links-supply-plunge-could-be-huge-for-bulls-is-100-viable)

[5] Chainlink (LINK) and Avalanche (AVAX) Break Downtrends (https://coinstats.app/news/aac910f0755ff3926c749490e3142d8870dfa3872d57cc641e7de7a69dd9cb52_Chainlink-LINK-and-Avalanche-AVAX-Break-Downtrends-Top-Altcoins-to-Watch)

[6] Chainlink Price Prediction 2025, 2026, 2027-2031 (https://www.cryptopolitan.com/chainlink-price-prediction/)

[7] Chainlink Could Get Its First ETF as Bitwise Submits SEC (https://icobench.com/news/chainlink-could-get-its-first-etf-as-bitwise-submits-sec-filing/)