Grayscale Secures Approval for First Spot Chainlink ETF Launch

• Grayscale receives SEC approval to launch first spot Chainlink ETF on NYSE Arca this week following regulatory review.
• The GLNK fund marks Grayscale’s third crypto ETF debut in two weeks after XRP and Dogecoin products.

Grayscale​‍​‌‍​‍‌​‍​‌‍​‍‌ Investments received the green light from the regulators to start the very first spot Chainlink exchange-traded fund (ETF) launch this week. The news is a major step forward for the U.S. market of institutional cryptocurrency investment products. 

After getting the green light from the SEC, the manager of the asset will change the Chainlink Trust of the asset into a fully tradable ETF listed on NYSE Arca. By this change, conventional investors will be able to access LINK tokens in a regulated and well-known investment ​‍​‌‍​‍‌​‍​‌‍​‍‌vehicle.

Third ETF Launch in Two Weeks

After​‍​‌‍​‍‌​‍​‌‍​‍‌ launching similar funds for XRP and Dogecoin, the Chainlink ETF is Grayscale’s third digital asset fund debut in just fourteen days. Grayscale first filed its registration statement in late September to make the change from trust to exchange-traded fund official. 

Grayscale’s GLNK offering has a feature that allows investors to stake tokens and thus earn rewards from network participation activities. However, this has attracted regulatory attention as the SEC is still looking into yield-generation methods in digital asset ​‍​‌‍​‍‌​‍​‌‍​‍‌funds.

Besides​‍​‌‍​‍‌​‍​‌‍​‍‌ this, a competitor Bitwise has likewise made an application for a Chainlink ETF with the ticker CLNK without staking capabilities which is already listed on DTCC. People following the market were initially of the opinion that the Bitwise product would be launched first which is a reason why they were waiting for a final regulatory clearance for Grayscale’s fund. 

In a recent piece of research conducted by Grayscale analysts and titled “The Link Between Worlds,” they acknowledged the increasing role of Chainlink in blockchain infrastructure. The study pointed out LINK as the biggest cryptocurrency by market capitalization in the Utilities and Services sector category. Especially, LINK is the largest digital asset that is not a Layer 1 blockchain ​‍​‌‍​‍‌​‍​‌‍​‍‌protocol.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ adoption of Chainlink technology by institutions has been fast-paced in recent months with a variety of different use cases. CaliberCos made a move to become one of the first U.S. companies to add LINK to its treasury holdings and also took part in staking. The People’s Bank of Hong Kong deployed Chainlink’s Cross-Chain Interoperability Protocol to conduct digital currency experiments that bind tokenized assets globally. World Liberty Financial has just upgraded its USD1 stablecoin with CCIP technology to extend its multi-chain and cross-network ​‍​‌‍​‍‌​‍​‌‍​‍‌features. 

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