Grayscale’s Spot Chainlink ETF Launch Expected in U.S. This Week

TLDR

• Grayscale will launch the first U.S. spot Chainlink ETF, providing direct exposure to LINK for investors.
• The Chainlink ETF will convert Grayscale’s private trust into a publicly listed fund.
• The ETF will track the spot price of Chainlink and include staking-related returns where allowed.
• Grayscale’s move competes with Bitwise, which is also planning a Chainlink ETF.
• This launch follows regulatory adjustments in the U.S. that have paved the way for crypto-linked ETFs.

Grayscale is set to launch the first-ever U.S. spot Chainlink ETF this week. The fund will convert Grayscale’s private Chainlink trust into a publicly listed ETF. This move gives U.S. investors direct access to Chainlink (LINK) through a regulated market vehicle.

Grayscale’s Chainlink ETF Conversion

The new ETF will track the spot price of Chainlink and may include staking-related returns under current regulations. Grayscale has operated its Chainlink trust since late 2020, and now it will bring the product to public markets. This shift will make the fund accessible to both retail and institutional investors.

Nate Geraci, co-founder of the ETF Institute, highlighted the importance of this development. He pointed out that it marks a major milestone in crypto investment products. The ETF’s launch will align with Bloomberg Intelligence’s forecast for approval this week.

Grayscale’s move places it in direct competition with Bitwise, another asset manager launching its own Chainlink ETF. Both firms aim to attract investors looking to gain exposure to the oracle-based token. The entry of these ETFs is expected to increase investor demand for regulated crypto-linked products.

Analysts predict that the market will see a surge in crypto-focused ETFs. Grayscale’s entry into the space follows a year of regulatory adjustments in Washington, easing the path for such products. The approval of crypto ETFs signals a broader acceptance of digital assets in traditional financial markets.

Growing Popularity of Altcoin ETFs

Grayscale is not alone in this movement. Other crypto ETFs linked to assets like Solana, XRP, and Dogecoin have already launched. These funds have attracted significant attention from investors eager to diversify their portfolios.

For example, the Canary Capital XRP ETF (XRPC) saw $245 million in inflows on its first day. Similarly, the Bitwise Solana Staking ETF (BSOL) raised over $660 million within weeks. These figures reflect a strong appetite for altcoin ETFs, which is expected to continue with the launch of Grayscale’s Chainlink ETF.

The arrival of the Chainlink ETF reinforces the trend of increasing institutional interest in digital assets. The growing demand for regulated crypto products is creating an environment conducive to the mainstream adoption of blockchain-based assets.

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