"Grayscale Challenges SEC with Regulated Chainlink Access Bid"

Grayscale, a leading digital asset manager, has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Chainlink Trust (LINK) into a spot exchange-traded fund (ETF). If approved, the ETF—intended for listing on NYSE Arca under the ticker GLNK—would offer institutional and retail investors a regulated and streamlined method to gain exposure to Chainlink (LINK), a key player in the decentralized finance (DeFi) ecosystem. This filing marks a significant expansion for Grayscale beyond its well-established Bitcoin and Ethereum products, showcasing growing institutional interest in altcoins. The trust would hold LINK directly, with Coinbase Custody serving as the custodian and BNY Mellon as the administrator and transfer agent. Shares would initially be created and redeemed in blocks of 10,000 through cash transactions facilitated by third-party liquidity providers, though in-kind transfers could be added later if regulators approve. The filing also includes provisions for staking LINK, contingent on regulatory and tax clarity, signaling a forward-looking approach to token utility and value generation.

The proposed Grayscale Chainlink Trust ETF aims to provide investors with a transparent, secure, and accessible structure by tracking the price of LINK directly rather than using derivatives. This aligns with increasing investor demand for spot ETFs, which are seen as simpler and more intuitive for portfolio construction and risk management. The initial cash-based model eliminates the need for investors to handle wallets, private keys, or exchange accounts, lowering barriers to entry for mainstream adoption. The infrastructure of the fund is supported by industry leaders such as Galaxy Digital, Jump Crypto, and Multicoin Capital, who are collaborating on custody, price tracking, and strategic guidance. This blend of traditional finance and crypto-native expertise is expected to enhance the fund’s reliability and appeal across both institutional and retail markets.

Chainlink, a decentralized oracle network that connects blockchain smart contracts to real-world data, plays a critical role in the DeFi ecosystem by providing tamper-proof data feeds. As of the latest reporting, Chainlink’s market capitalization stood at $15.22 billion, placing it 13th among crypto assets, according to CoinGecko and Coinbase data. The price of LINK was recently trading at $22.46, reflecting a 0.54% increase over the past 24 hours and a 19.34% increase over the last 30 days. This upward trend has been supported by growing ecosystem developments, including recent partnerships with the U.S. Department of Commerce and Solv Protocol, which aim to bring macroeconomic data and collateral verification on-chain. Social media activity and trading volume have also seen notable surges, with bullish sentiment dominating the conversation, according to on-chain analytics platforms like LunarCrush.

The regulatory landscape for digital assets remains a focal point, particularly as the SEC continues to navigate the complexities of crypto regulation. Grayscale’s filing for a Chainlink ETF arrives amid heightened regulatory scrutiny and recent enforcement actions against major crypto platforms, which have contributed to market volatility. However, momentum is building for spot ETF approvals in the U.S., especially following high-profile applications from BlackRock, Fidelity, and other institutional leaders. Grayscale’s initiative could set a precedent for altcoin spot ETFs and establish a regulatory template for future crypto asset funds, influencing the broader ecosystem’s trajectory. Success for GLNK may also pave the way for other Grayscale proposals, including ETFs for Avalanche (AVAX), Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), and XRP. These efforts reflect a broader appetite for diversified, regulated investment vehicles in the crypto market, as both institutional and retail investors seek more structured exposure to digital assets.

Grayscale’s proposed Chainlink ETF aligns with broader trends in institutional adoption and regulatory evolution in the crypto space. As more firms explore crypto-friendly investment products, the integration of blockchain technology into mainstream financial infrastructure continues to accelerate. Chainlink’s role as a bridge between on-chain smart contracts and real-world data positions it as a foundational element in this transition, particularly as partnerships with government agencies and financial institutions expand. While the outcome of the SEC’s review remains uncertain, the filing represents a significant step toward legitimizing altcoin investments within traditional financial systems. If approved, the Grayscale Chainlink Trust ETF could not only enhance market accessibility for LINK but also reinforce the growing demand for regulated crypto products in a rapidly evolving asset class.

Source:

[1] Grayscale files to convert Chainlink trust into ETF (https://cryptobriefing.com/chainlink-trust-etf-conversion/)

[2] Grayscale Files S-1 With The SEC For Chainlink ETF (https://www.banklesstimes.com/articles/2025/09/08/grayscale-files-s-1-with-the-sec-for-chainlink-etf/)

[3] Chainlink Price, LINK Price, Live Charts, and Marketcap (https://www.coinbase.com/price/chainlink)