Bitwise Files S-1 for Chainlink ETF as LINK Stabilizes Amid Market Correction

The Chainlink (LINK) token has shown signs of stabilization and renewed investor interest following news that Bitwise filed an S-1 with the U.S. Securities and Exchange Commission (SEC) to launch a Chainlink ETF. This move is part of a broader trend of altcoin ETF proposals and represents a potential institutional on-ramp for investors seeking exposure to the Chainlink oracle network, a foundational component of decentralized finance (DeFi) infrastructure [1]. The filing coincided with a market correction affecting most crypto assets, but LINK appears to have avoided a deeper decline, with the token trading at $23.54 and curbing its recent downward trend [1].

Bitwise Investment Advisers, known for its credibility in the crypto asset management space, submitted a preliminary S-1 prospectus for the ETF, which would track the performance of the native LINK token. The proposed product is expected to use Coinbase Custody for token storage and will be cash-settled, with the option for in-kind settlement in the event of a liquidation. However, in-kind settlement—which would require investors to handle custody of the tokens—has not yet been implemented in any existing ETF structure [1].

The filing highlights Chainlink’s growing importance in the blockchain ecosystem. The oracle network secures over $59.56 billion in value and supports more than 458 protocols, maintaining a dominant position in the DeFi space. Additionally, LINK has been included in Canary Capital’s “Made in USA” crypto selection, a curated list of top U.S.-related digital assets by market capitalization [1]. The token’s recent performance has also been influenced by its role in the real-world-asset (RWA) tokenization narrative, which has driven increased open interest and on-chain activity [1].

Despite the bullish signals, the token remains subject to market volatility, with LINK historically trading in a range between $12 and $52. On-chain data indicates that exchange reserves for LINK are trending downward, with mostly outflows since the summer of 2024, while whale activity on perpetual futures platforms suggests a strong bullish sentiment—over 86.59% of Hyperliquid whales hold long positions [1]. However, this concentration of long exposure could pose risks in the event of cascading liquidations.

Grayscale’s Chainlink Trust remains the only live mainstream product for LINK, holding over $29 million in value with 0.89 LINK per share. The Trust has historically traded at significant premiums and discounts to the token’s market value, raising questions about liquidity and price discovery. A more widely accessible and liquid ETF structure could help align the market price of LINK with its intrinsic value, potentially attracting a broader investor base [1].

The filing of the Chainlink ETF comes at a time when the SEC has delayed several crypto ETF applications, pushing back the Wisdom Tree ETF to October. Nevertheless, the continued flow of new filings underscores the demand for regulated investment vehicles in the crypto space. The outcome of Bitwise’s application may influence future regulatory decisions and shape the broader acceptance of blockchain-based assets in traditional financial markets [1].

Source: [1] JUST IN: Bitwise has filed an S-1 with the SEC to launch a Chainlink ($LINK) ETF, aiming to bring institutional exposure to the oracle network. Photo ... (https://www.instagram.com/cryptosrus/?hl=en)