Grayscale Pushes for Spot Chainlink ETF Approval in the U.S.

Grayscale has taken another step in expanding its crypto portfolio by filing first spot Chainlink (LINK) exchange-traded funds (ETFs) to American markets. This move, which also includes a possible staking feature, was announced in a recent S-1 registration statement with the U.S. Securities and Exchange Commission (SEC).

Grayscale to Convert Chainlink Trust to ETF

The proposed product is designed as a conversion of the existing Grayscale Chainlink Trust. If approved, it would trade on NYSE Arca under the ticker GLNK, with Coinbase Custody Trust Company acting as custodian. Investors would gain direct exposure to the price of LINK, the token that powers Chainlink’s decentralized oracle network.

Unlike traditional trusts, the ETF would process share creations and redemptions in cash. This follows the same model used by recently approved spot Bitcoin and Ethereum ETFs. However, the filing leaves room for in-kind redemptions in the future if regulators approve.

What makes the filing especially notable is the potential staking component. The ETF may allocate a portion of its LINK to staking if regulatory and tax conditions allow. 

This could create an additional stream of income for investors in the form of rewards. Staking would be handled by third-party providers, while the tokens themselves remain under custody. The fund would decide whether rewards are retained, sold, or distributed.

Part of a Bigger ETF Race

Bitwise was the first to file for an ETF focused on Chainlink (LINK). Grayscale’s new filing shows that big investors are paying more attention to Chainlink’s network. Meanwhile, Grayscale has not limited its ambitions to Chainlink. In recent weeks, it has filed for Avalanche and Dogecoin ETFs. This adds to earlier filings for Solana (SOL), Litecoin (LITE), and XRP. 

Also, big asset managers like 21Shares and VanEck are rushing to get their own spot crypto ETFs approved. This new wave of ETF filings comes at a time when the rules and oversight around crypto are becoming friendlier. 

Following Grayscale’s filing, the price of LINK went up by almost 4%, reaching $23.00, according to CoinMarketCap data. 

Chainlink Strengthens Network With New LINK Reserve and Major Milestones

Chainlink is one of the most popular decentralized oracle networks. It allows blockchains to connect with real-world data in a safe way. 

LINK, the platform’s own token, is used to pay node operators and also helps secure the network through staking. In August, Chainlink launched a special LINK reserve that is supported by both on-chain and off-chain revenue. The goal is to support the protocol’s long-term growth and stability. 

This move came shortly after Chainlink reached a major milestone. Reportedly, Chainlink is now the first platform to earn ISO 27001 certification and SOC 2 Type 1 attestation. 

The platform’s progress is also attracting traditional finance players. Real asset manager Caliber recently announced plans to build a crypto treasury by betting on Chainlink’s native token LINK.

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