Key Notes
- Bitwise’s Chainlink ETF will be structured as a Delaware statutory trust with NAV linked to the CME CF Chainlink–Dollar Reference Rate.
- Shares will be created and redeemed in blocks of 10,000 via a “Trust-Directed Trade” system, allowing transactions in LINK or USD.
- The ETF filing has driven increased whale activity and trading volumes, fueling bullish sentiment for LINK.
In the latest development, Bitwise Asset Management has submitted an S-1 filing to the US Securities and Exchange Commission (SEC) to launch a spot Chainlink
LINK
$24.20
24h volatility:
3.3%
Market cap:
$16.41 B
Vol. 24h:
$1.64 B
exchange-traded fund (ETF). This regulated fund will track LINK price, the native cryptocurrency of Chainlink.
Bitwise Spot Chainlink ETF on Radar
The latest filing for the spot Chainlink ETF shows that the shares of the trust will list on a US national exchange. However, Bitwise remains undecided on the specific venue for listing the shares.
The document also details standard creation and redemption mechanisms, noting that the trust can process both in-kind and cash transactions. This will happen via a “Trust-Directed Trade” system managed by the prime execution agent.
The ETF will be structured as a Delaware statutory trust. Its Net Asset Value (NAV) will be linked to the CME CF Chainlink–Dollar Reference Rate (New York Variant), a benchmark maintained by CF Benchmarks.
Shares will be created and redeemed in blocks of 10,000, allowing authorized participants to transact in either LINK or US dollars. As with other crypto ETFs, secondary market trading could see shares trade at premiums or discounts relative to NAV.
ETF Buzz Sparks Bullish LINK Momentum
Rising approval odds for a Chainlink (LINK) spot ETF are fueling a new bullish narrative, with LINK price on radar. Following the ETF filing, whale activity has increased, and trading volumes have surged. LINK price formed a big green candle on charts, bouncing from the support of $22.95, and is currently trading above $24.
Industry observers note that potential ETF-driven inflows could create a supply squeeze, as LINK’s tokenomics continue to lock up tokens, amplifying the impact of each institutional investment.
LINK is one of the top-performing digital assets and is now the 11th largest digital asset by market cap, and is up more than 26% over the past month. As of now, Chainlink price is facing a crucial resistance at $25, crossing which would open the gates for another 20% rally to $30.
Social media sentiment shows strong optimism surrounding the potential Chainlink ETF, but some institutional investors caution that near-term volatility is likely.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
