Grayscale's Chainlink ETF Bid Sparks Debate Over Staking's Role in Regulated Crypto Income

Grayscale has submitted an application to the U.S. Securities and Exchange Commission to transform its existing Chainlink Trust into a spot exchange-traded fund, a move that has triggered a 3% rise in the price of Chainlink’s LINK token in the last 24 hours. This potential ETF, if granted approval, is expected to trade on the NYSE Arca under the ticker GLNK, as outlined in a recent S-1 registration statement filed with the SEC. The filing is a pivotal step in the process of making an ETF official and signals Grayscale's intent to bring a regulated product to traditional investors. The proposed ETF will mirror the structure used in recently approved spot bitcoin and ethereum ETFs, with a cash-based mechanism for share creation and redemption, while allowing for the possibility of in-kind redemptions if future regulations permit [1].

The filing also introduces a potential staking feature. If permitted by regulators, the fund could employ third-party staking services while safeguarding the LINK tokens in custodian wallets. Staking rewards might either be retained by the fund, distributed to shareholders, or sold to offset expenses, depending on forthcoming regulatory guidance [1]. This feature could introduce an income component to the ETF, which is currently not available in most U.S. crypto ETFs [2].

The Grayscale Chainlink Trust, which has been in operation since February 2026, currently holds nearly $29 million in assets, with Coinbase Custody Trust Company serving as custodian. This proposed ETF is part of Grayscale’s broader initiative to transition several single-asset crypto trusts into ETFs. Alongside the Chainlink ETF, Grayscale has submitted proposals for funds tied to the price of Solana, Dogecoin, and XRP [2]. Despite the SEC, under Chair Paul Atkins, having yet to approve or reject any of these applications, companies continue to prepare products they believe could be the first in their respective asset classes [1].

The filing has been positively received by the market. Alongside the proposed ETF news, Chainlink’s LINK token has outperformed many other altcoins in the 24-hour period, with significant gains for XRP, SOL, and DOGE. This suggests investor optimism regarding the potential approval of the ETF and the increased accessibility it could bring to the Chainlink asset class [1].

Grayscale’s proposed ETF would provide regulated access to Chainlink’s price performance, a protocol that powers decentralized data feeds for blockchain applications and smart contracts. The addition of a potential staking feature could further enhance the appeal of the product by offering an income stream not commonly found in other U.S. crypto ETFs [2].

Source:

[1] Chainlink jumps as Grayscale files for first-ever U.S. Chainlink ETF (https://www.coindesk.com/markets/2025/09/08/chainlink-jumps-as-grayscale-files-for-first-ever-u-s-chainlink-etf)

[2] Grayscale files for what could be first-ever U.S. Chainlink ETF (https://finance.yahoo.com/news/grayscale-files-could-first-ever-142738823.html)