Institutional Access Expands as Bitwise Seeks to ETF-ize Chainlink

Bitwise Asset Management has submitted a formal S-1 filing with the U.S. Securities and Exchange Commission (SEC) to launch the first U.S. spot-based exchange-traded fund (ETF) focused on Chainlink’s native token, LINK. The proposed ETF aims to provide direct exposure to Chainlink’s token price and is structured as a Delaware statutory trust. If approved, it would expand the U.S. crypto ETF market beyond Bitcoin and Ethereum, marking a significant step in the evolution of altcoin investment products. The filing outlines that Coinbase Custody will serve as the fund’s custodian, while the fund will track the CME CF Chainlink-Dollar Reference Rate (New York Variant). The product will allow investors to gain exposure to the token without needing to hold it directly, using both cash and in-kind creation and redemption mechanisms [1].

The news has already triggered a short-term price reaction for LINK, which rose approximately 4-5% following the announcement. While the gain is modest, it indicates investor optimism regarding increased institutional access to Chainlink through a regulated vehicle. The price rebound, however, remains within a broader consolidation phase, as technical indicators suggest sustained bearish pressure. According to CoinDesk Research, the token has fluctuated within a $1.84 range over the past 24 hours, with key support and resistance levels forming near $23.00 and $24.30, respectively. A sustained move above $24.00 could signal a shift in market sentiment, but failure to reclaim this level would reinforce downward momentum [1].

The Bitwise Chainlink ETF is part of a broader trend among asset managers seeking to introduce altcoin-focused spot ETFs in the U.S. This momentum follows the successful launch of Bitcoin and Ethereum ETFs and the relative easing of regulatory scrutiny under the Trump administration. The structure of the proposed ETF mirrors those already approved, with a straightforward design that includes 100% exposure to LINK, no staking, and a single custodian. This simplicity may improve its chances of SEC approval, though the agency’s stance on altcoin ETFs remains uncertain. The filing also excludes any references to staking, despite prior SEC guidance indicating that staking does not inherently violate securities laws [3].

The potential approval of the Bitwise Chainlink ETF could have notable implications for the token’s market dynamics. With a market capitalization placing it among the top 13 largest digital assets, LINK has seen over 26% gains in the past month. Analysts note that the token’s supply mechanics—characterized by token locks and limited supply—could amplify the impact of institutional inflows. Additionally, increased demand from a regulated product may create a supply squeeze, further driving price action. However, experts caution that short-term volatility remains a risk as the market digests the new product and awaits regulatory feedback [3].

In parallel, global demand for crypto ETFs has surged, with nearly $30 billion in inflows this year alone. While the U.S. remains a key market, European firms like 21Shares and VanEck already offer Chainlink-based ETPs, demonstrating existing investor appetite. A U.S.-listed Chainlink ETF could attract a new wave of institutional capital, further cementing the token’s role in the broader digital asset ecosystem. Chainlink’s technology, which connects smart contracts to real-world data, is already widely adopted in DeFi, NFTs, and cross-chain applications. A successful ETF launch could further integrate the token into mainstream financial markets [4].

The outcome of the SEC review will be closely watched by industry participants and investors alike. The filing process is just the first step, with approval contingent on regulatory discretion and market readiness. If approved, the Bitwise Chainlink ETF could serve as a model for future altcoin products, accelerating the diversification of the U.S. crypto ETF landscape. For now, the filing underscores the growing institutional interest in alternative tokens and the expanding role of regulated vehicles in crypto investment [4].

Source:

[1] Chainlink Price News: 5% Bounce on Spot LINK ETF Filing (https://www.coindesk.com/markets/2025/08/26/bitwise-files-to-launch-a-spot-chainlink-etf-link-bounces-5)

[2] Bitwise Files for First U.S. Spot Chainlink ETF (https://coinpaper.com/10732/is-chainlink-about-to-go-mainstream-bitwise-files-for-first-u-s-spot-etf)

[3] Bitwise Submits S-1 Filing to US SEC for Spot Chainlink ETF (https://finance.yahoo.com/news/bitwise-submits-1-filing-us-153229829.html)

[4] JUST IN: Bitwise Files for First-Ever Chainlink Spot ETF (https://coinpedia.org/news/just-in-bitwise-files-for-first-ever-chainlink-spot-etf/)