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- Grayscale files S-1 to convert Chainlink Trust into an ETF on NYSE Arca.
- LINK price jumps ~3% amid filing news, showing market optimism.
- Institutional investors gain potential exposure through ETF and staking features.
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Grayscale has become the second major asset manager to file for a Chainlink (LINK) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), sparking renewed interest in the crypto token. LINK has seen a price uptick of around 2% following the announcement, signaling optimism among investors.
Grayscale Files S-1 Registration for LINK ETF
According to the SEC filing, Grayscale aims to convert its existing Grayscale Chainlink Trust into a fully tradable ETF. The fund is set to list on the New York Stock Exchange (NYSE) Arca under the ticker GLINK. Grayscale’s filing aligns with the SEC’s proposed Generic Listing Standards for crypto ETFs, which could allow the fund to list without requiring a 19b-4 filing.
The asset manager noted that it would not seek the registration statement’s effectiveness until the SEC adopts the proposed rule change or determines such approval isn’t necessary. The prospectus for the Chainlink ETF has already been prepared in anticipation of this potential approval.
Institutional Exposure and Key Partnerships
The Grayscale Chainlink ETF aims to provide institutional investors with direct exposure to LINK. The Bank of New York Mellon will act as the transfer agent and administrator, while Coinbase serves as the prime broker, with its custody arm safeguarding the Trust’s assets.
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The ETF may also feature in-kind creation and redemption mechanisms once approved by the SEC. Additionally, staking could be introduced for the fund in the future, pending regulatory clarification, providing potential additional yield opportunities for investors.
Also Read: Cardano (ADA) Climbs to #3 in Grayscale Rankings as SEC ETF Decision Looms
LINK Price Reacts to ETF News
Market reaction to Grayscale’s filing has been positive. LINK is trading around $23, marking an approximate 3% increase over the last 24 hours, according to TradingView data. This rebound demonstrates growing investor confidence and highlights the potential market impact of institutional-grade crypto ETFs.
Grayscale’s Chainlink ETF filing marks a significant step toward broader institutional adoption of crypto assets. By aligning with the SEC’s proposed Generic Listing Standards and leveraging trusted partners like Coinbase and BNY Mellon, Grayscale is positioning LINK for mainstream exposure. If approved, this ETF could pave the way for further crypto adoption among institutional investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
