Chainlink Gains 5% After Bitwise Submits First LINK ETF Filing

Chainlink (LINK) gained 5% following Bitwise’s submission of a spot ETF application with the U.S. Securities and Exchange Commission (SEC). The filing, which includes plans to store tokens via Coinbase Custody Trust, sparked a sharp price rebound from an intraday low of $22.94 on August 26 to $23.96 during the session [1]. Although the token has since declined 1.9% over the past 24 hours, the momentum reflects renewed institutional interest in altcoin exposure [1].

The Bitwise Chainlink ETF filing is the first of its kind for the decentralized oracle network, distinguishing it from previous leveraged products like the 2x Chainlink ETF proposed by Tuttle Capital [1]. If approved, the ETF would offer traditional investors—such as pension funds and hedge funds—direct exposure to LINK through a regulated investment vehicle [1]. The fund’s structure supports both cash-based and in-kind creation and redemption, a feature analysts note as more efficient and cost-effective in the context of crypto ETFs [4].

The filing also highlights Chainlink’s ongoing strategic partnerships, including one with Japan’s SBI Group to develop cross-chain tokenized real-world assets through the Cross-Chain Interoperability Protocol (CCIP) [1]. Meanwhile, the Chainlink reserve now holds over 150,000 LINK tokens, reinforcing its role as a foundational infrastructure layer for decentralized finance (DeFi) [1].

The market response to the filing has been swift, with whale activity showing $1.4 million in LINK purchases in the days following the announcement [2]. The token’s price fluctuated within a $1.84 range between $22.90 and $24.81, before settling at $24.27, reflecting a 1.1% decline at the time of reporting [4].

The broader implications of the filing extend beyond Chainlink, signaling a shift in investor sentiment toward diversified blockchain ecosystems. As more firms seek to bridge traditional and digital markets, the approval of such products could facilitate mainstream adoption of altcoins. However, the ETF remains subject to SEC review, including initial evaluations, public comments, and potential amendments before a final decision is reached [1].

Source:

[1] Chainlink Price Rises 5% After Bitwise ETF Filing (https://cryptofrontnews.com/chainlink-price-rises-5-after-bitwise-etf-filing/)

[2] Bitwise Files Chainlink ETF SEC as LINK Rises 6% (https://www.ainvest.com/news/bitwise-files-chainlink-etf-sec-link-rises-6-2508/)

[4] Bitwise Files for Chainlink ETF With In-Kind Creation and Redemption (https://decrypt.co/336881/bitwise-chainlink-etf-in-kind-creation-redemption)