Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Chainlink exchange-traded fund (ETF), marking another step in Wall Street’s growing appetite for single-asset crypto products.
According to the preliminary S-1 filing, the Bitwise Chainlink ETF aims to track the market price of LINK, the native token of the Chainlink oracle network. Coinbase Custody Trust Company is listed as the proposed custodian, while Coinbase, Inc. would serve as the fund’s prime execution agent. Bitwise expects the ETF to trade on a U.S. national exchange, though the specific venue has not yet been disclosed.
How the ETF Would Work
The trust is structured to mirror LINK’s spot price without incorporating staking or yield-generation features. While recent SEC guidance has clarified that staking certain assets is permissible under federal securities law, Bitwise’s filing makes no mention of validator participation or staking rewards. Instead, the product is designed as straightforward exposure to Chainlink’s token.
The ETF would use standard creation and redemption processes, including both in-kind and cash transactions through a “Trust-Directed Trade” mechanism handled by the execution agent.
Why Chainlink?
Chainlink is a decentralized oracle network that connects blockchains with real-world data, including price feeds for decentralized finance (DeFi) protocols. LINK, its native token, is used to incentivize node operators and secure the network under its proof-of-stake model.
The filing comes as interest grows in moving beyond Bitcoin and Ethereum ETFs. Just a day earlier, Grayscale filed to convert its Avalanche Trust into a spot AVAX ETF, highlighting the industry’s push to diversify crypto investment products.
Market Context
Bitwise’s decision follows a July report by CIO Matt Hougan, who called Chainlink one of the “cleanest” crypto plays in the market, citing its role in the tokenization trend and real-world asset integration.
At present, LINK trades around $23, according to data, well below its all-time high of $52 reached in May 2021. Still, institutional investors appear eager for new ways to access the asset without the hurdles of direct token custody.
The Bigger Picture
The Bitwise Chainlink ETF filing underscores the momentum behind crypto funds designed to track individual tokens. If approved, it could open the door for more niche digital assets to enter mainstream investment portfolios, further broadening Wall Street’s crypto exposure.
