Grayscale Bridges Traditional and DeFi Markets With New Chainlink ETF Bid

Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to launch its first U.S. Chainlink (LINK) exchange-traded fund (ETF), marking a significant expansion of the company’s suite of crypto-backed products. The proposed ETF would represent the latest effort by the firm to bridge the gap between traditional financial markets and the growing blockchain and decentralized finance (DeFi) sectors. Grayscale currently manages a range of products including the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust, which have gained considerable traction among institutional and retail investors.

The proposed Chainlink ETF would seek to track the price performance of the LINK token, the native cryptocurrency of the Chainlink decentralized oracle network. Chainlink has seen steady adoption across the DeFi and smart contract ecosystems, serving as a critical infrastructure layer that connects smart contracts with real-world data. As of the latest reporting period, Grayscale’s Chainlink product has accumulated $29 million in assets under management, signaling growing investor interest in the token and the broader oracle market [1].

While the SEC has yet to approve the filing, the move reflects an increasing appetite among traditional investors for exposure to DeFi-related assets. Chainlink, which ranks among the top 10 cryptocurrencies by market capitalization, has demonstrated resilience through recent market volatility, offering a hedge against the more speculative elements of the crypto market. Analysts suggest that the introduction of a Chainlink ETF could facilitate broader institutional adoption and further integrate DeFi infrastructure tokens into mainstream investment portfolios [2].

The filing also underscores Grayscale’s strategic focus on diversifying its product offerings beyond Bitcoin and Ethereum. In recent quarters, the firm has expanded its portfolio to include exposure to a wider range of blockchain technologies, including stablecoins and infrastructure protocols. This move aligns with a broader trend in the crypto market where investors are shifting their attention from speculative assets to projects with clear utility and real-world applications.

Investor demand for exposure to Chainlink is further supported by its growing ecosystem of partnerships and integrations with major blockchain platforms and financial institutions. The token’s role in ensuring data accuracy and smart contract execution has positioned it as a key player in the development of decentralized financial services. Should the ETF be approved, it could serve as a critical on-ramp for traditional investors seeking to participate in the evolution of the DeFi space without directly purchasing or managing the underlying digital assets [3].

Source:

[1] Grayscale Investments (https://grayscale.co)

[2] CoinDesk (https://www.coindesk.com)

[3] The Block (https://www.theblock.com)