Grayscale Seeks to Bring Regulated Staking to U.S. Crypto Investors

Grayscale has submitted a formal application to the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Chainlink Trust into a spot exchange-traded fund (ETF). The proposed product, if approved, would be listed on NYSE Arca under the ticker symbol GLNK. This filing, part of an S-1 registration statement, marks a key step in the regulatory process required to launch an ETF. The initiative is part of a broader strategy by Grayscale to transform its existing cryptocurrency trusts into ETF structures, aiming to provide traditional investors with regulated access to digital assets.

The Grayscale Chainlink Trust, which has been in operation since February 2026, currently oversees approximately $29 million in assets. The proposed ETF would continue to hold Chainlink’s LINK token and is expected to mirror the operational framework used by recently approved spot ETFs for Bitcoin and Ethereum, including cash-based share creation and redemption processes. The trust has also outlined the potential inclusion of a staking feature, subject to regulatory approval. If permitted, the fund could engage third-party staking providers while maintaining custody of the tokens in secure wallets. Staking rewards may be retained by the fund, allocated to shareholders, or sold to cover expenses, depending on future guidance from regulators [1].

The transition to an ETF format represents a strategic move to align with the growing demand for regulated investment vehicles in the cryptocurrency sector. Grayscale is also pursuing similar transformations for other single-asset crypto trusts, including those focused on Solana, Dogecoin, and XRP. However, none of these proposals have yet received a definitive response from the SEC, which is still evaluating its stance on spot crypto ETFs under Chair Paul Atkins. Despite the uncertainty, firms continue to prepare for potential approvals, aiming to introduce products that could pioneer their respective asset classes.

The filing has generated a positive market response. Chainlink’s LINK token has gained nearly 3% over the past 24 hours, outpacing gains in other major altcoins such as XRP, Solana, and Dogecoin. The ETF’s potential approval is expected to enhance liquidity for Chainlink, which plays a critical role in providing decentralized data feeds for blockchain applications and smart contracts. The proposed addition of staking functionality could further differentiate the product from existing U.S. crypto ETFs, introducing a source of recurring income for investors [2].

The broader cryptocurrency market appears to be influenced by macroeconomic factors as well. A weaker-than-expected August jobs report has increased speculation about an imminent Federal Reserve rate cut, which historically has a positive correlation with crypto prices. A reduction in interest rates typically leads to lower borrowing costs, encouraging investment in riskier assets such as digital currencies. While inflationary risks remain a concern, many analysts view the potential benefits of monetary easing—such as increased liquidity and investor confidence—as favorable for the crypto sector. With these dynamics in play, the environment appears increasingly conducive to growth, particularly if the GLNK ETF and other crypto ETFs gain regulatory approval [3].

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[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)

[3] Here's how a weak jobs report could spell gains for crypto (https://cryptoslate.com/heres-how-a-weak-jobs-report-could-spell-gains-for-crypto/)