Bitwise Asset Management has filed a preliminary S-1 registration statement with the United States Securities and Exchange Commission (SEC) to launch a spot Chainlink exchange-traded fund (ETF). The proposed Bitwise Chainlink Trust seeks to offer regulated blue-chip exposure to the LINK token by reflecting its market price in share performance.
Fund Structure and Objectives
The filing outlines that the ETF will hold LINK tokens in custody, aiming to replicate the price movements of LINK on a one-to-one basis, less fund expenses. Creation and redemption mechanisms are designed to allow authorized participants to transact in kind or in cash via an automated"Trust-Directed Trade" system under the oversight of a designated prime execution agent.
Custody and Execution Arrangements
Coinbase Custody Trust Company is named as the proposed custodian for the fund’s LINK holdings, ensuring institutional-grade security and segregated asset storage. Coinbase, Inc. is identified as the prime execution agent responsible for facilitating market transactions and supporting liquidity in both primary and secondary markets.
Regulatory Context and Market Impact
This filing follows the SEC’s earlier approvals and guidance clarifying the treatment of staking rewards under securities laws. Notably, Bitwise’s S-1 excludes provisions for staking LINK, positioning the product as a passive spot exposure vehicle rather than a yield-producing instrument, likely influenced by recent regulatory emphasis on delineating securities transactions.
Industry Expansion of Single-Token ETFs
The Chainlink ETF filing adds to a wave of single-token product proposals aimed at broadening institutional access beyond Bitcoin and Ether. Earlier this week, Bitwise filed to convert its Avalanche Trust into a spot AVAX ETF, underscoring growing demand for targeted crypto investment vehicles. Analyst forecasts indicate that approval of a LINK ETF could catalyze further retail and institutional inflows into decentralized oracle networks.
Next Steps and Listing Prospects
Bitwise expects the ETF to list on a U.S. national securities exchange pending SEC review and approval. Timeline estimates project potential trading commencement in late 2025, contingent on regulatory feedback and exchange selection. The S-1 indicates no specific venue at filing, delegating final listing decisions to market conditions and approval status.
The Bitwise Chainlink ETF represents a strategic pivot toward specialized crypto products that offer precise asset allocation options for investors seeking targeted exposure within the expanding digital asset ecosystem.
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