Bitwise has initiated the registration process for the first spot exchange-traded fund based on the cryptocurrency Chainlink (LINK) by submitting the relevant application to the U.S. Securities and Exchange Commission (SEC). This fund is named the Bitwise Chainlink ETF and aims to become an innovative financial instrument for investors seeking direct access to the asset.
This is reported by Business • Media
Features of the Bitwise Chainlink ETF and Company Plans
According to the submitted documentation, the Bitwise Chainlink ETF is being created to provide investors with a secure and transparent exposure to Chainlink. The fund will invest directly in the digital asset, distinguishing it from other similar products that may be based on futures. All transactions for issuing and redeeming fund shares will be conducted exclusively in cash.
Custodial services for the Bitwise Chainlink ETF will be provided by Coinbase Custody Trust Company, with the exchange acting as the primary agent. However, the name of the exchange and the ticker for the new product have not yet been disclosed. The paperwork does not specifically mention staking, although the SEC has previously noted that this mechanism does not contradict securities legislation.
“If Bitwise receives approval, it will be the first spot LINK ETF in the U.S. Meanwhile, the assets under management (AUM) of the largest exchange-traded fund based on the token — the 21Shares Chainlink ETP, traded in Europe — amount to $49.5 million.”
Market Reaction and Future Prospects
In light of the news regarding the application, Chainlink (LINK) demonstrated a notable increase. Over the course of a day, the token’s price rose by 2.3%.
Interest in spot ETFs for altcoins from major players continues to grow. For example, Grayscale Investments has approached the SEC with a request to convert its closed trust based on Avalanche (AVAX) into a spot ETF, indicating a gradual expansion of the range of such products in the market.