Bitwise Files S-1 for Chainlink ETF, SEC Approval Likely to Unlock New Opportunities for the Crypto Market

Bitwise Asset Management has filed an S-1 with the SEC to launch a Chainlink ETF, which would hold LINK directly with custody managed by Coinbase. If approved, the ETF would track the CME CF Chainlink-Dollar Reference Rate and have a net asset value updated once daily. Analysts' price forecasts point toward $100 in the long term. The move marks a potential milestone for the asset and the wider crypto market.

Bitwise Asset Management has filed an S-1 with the U.S. Securities and Exchange Commission (SEC) to launch a Chainlink ETF, marking a significant development in the crypto asset market. The proposed ETF, if approved, would directly hold LINK tokens and track the CME CF Chainlink-Dollar Reference Rate. The move is expected to provide investors with regulated exposure to Chainlink without the hassles of direct custody.

The ETF would be managed by Coinbase Custody Trust Company, a well-established name in the crypto ETF space. This choice of custodian is likely to instill confidence among institutional investors, given Coinbase's reputation and the trust it has built through its custody services for several major U.S.-listed crypto ETFs [1].

One of the key features of the proposed ETF is the in-kind creation and redemption mechanism. This allows authorized participants to deliver LINK tokens to the fund in exchange for shares and vice versa. This approach can reduce market impact on large trades and potentially lower taxable events for large institutional flows [1].

The filing comes at a time when Chainlink's LINK token has shown modest pullbacks in price and derivatives metrics. At the time of the filing, LINK was trading near $24.27, down about 1.1% over 24 hours [1]. Despite this, analysts remain bullish on the long-term potential of LINK, with price forecasts pointing toward $100 in the long term.

Bitwise's prior experience with Bitcoin and Ethereum ETFs, which have seen $2.2 billion and $461 million in net inflows respectively, indicates a strong track record in managing crypto ETFs [1]. This experience, coupled with the proposed ETF's innovative structure and robust custody arrangements, could attract significant institutional interest.

The approval of the Chainlink ETF by the SEC would be a milestone for the asset and the wider crypto market. It would provide investors with a regulated and accessible way to gain exposure to Chainlink, potentially driving further institutional adoption and market growth.

References:
[1] https://en.coinotag.com/bitwise-seeks-chainlink-etf-that-would-hold-link-with-coinbase-custody-could-enable-in-kind-creation/