Grayscale Pushes to Bring LINK to NYSE Under GLNK Ticker

TLDR

• Grayscale files for GLNK ETF, first spot Chainlink fund with staking option.
• GLNK ETF to give regulated spot LINK exposure, with future staking potential.
• Grayscale’s GLNK ETF could pioneer Chainlink spot access with staking rewards.
• Chainlink Trust set to become GLNK ETF, offering spot LINK exposure on NYSE.
• GLNK ETF may debut as first Chainlink fund, eyeing staking and altcoin expansion.

Grayscale has filed an S-1 registration with the SEC to convert its Chainlink Trust into a GLNK ETF. The GLNK ETF aims to provide spot exposure to LINK while offering a regulated investment structure. This move signals a broader push by Grayscale to expand beyond Bitcoin and Ethereum spot ETFs.

Chainlink ETF Eyes Spot Trading Structure

Grayscale plans to list the GLNK ETF on NYSE Arca under the new ticker GLNK, subject to SEC approval. The fund will offer direct price exposure to LINK, Chainlink’s native token. Coinbase Custody will act as the custodian for the GLNK ETF.

The GLNK ETF will operate using a cash creation and redemption model at launch. However, Grayscale intends to support in-kind redemptions once regulators approve. This mirrors current models used by spot Bitcoin and Ethereum ETFs.

Chainlink’s decentralized oracle system connects smart contracts with real-world data. The GLNK ETF will give access to this market without needing crypto wallets or exchanges. This model simplifies access for traditional market participants.

Staking Option Under Review

Grayscale’s filing includes a possible staking component for the GLNK ETF. If regulators and tax authorities approve, the ETF could stake LINK assets to generate yield. Staking would occur through third-party providers while maintaining assets in secure custody.

Rewards from staking may be retained, distributed, or sold depending on regulatory outcomes. This addition would differentiate GLNK ETF from other spot ETFs. The structure adds potential returns beyond LINK price movement.

The GLNK ETF would become the first Chainlink-focused fund to include staking capabilities. Grayscale’s filing outlines a flexible framework that adapts to evolving rules. This strategy prepares the GLNK ETF for long-term market participation.

Broader Altcoin ETF Expansion

Grayscale continues expanding its crypto ETF offerings with the GLNK ETF. The firm recently filed for spot ETFs tied to Avalanche, Dogecoin, Solana, Litecoin, and XRP. This marks a shift toward a diversified altcoin ETF strategy.

The GLNK ETF aligns with this broader approach to offer regulated access to major DeFi tokens. Chainlink’s $15.6 billion market cap makes it a significant addition to this lineup. The token currently ranks 13th among all crypto assets.

Bitwise Asset Management also filed for a Chainlink ETF in August. Grayscale’s GLNK ETF could be first to market if approved under NYSE Arca’s proposed standards. These standards may reduce the need for case-by-case reviews.

Regulatory Landscape May Support Approval

Grayscale’s GLNK ETF filing comes during a regulatory shift in the U.S. Under the current administration, the SEC may show more openness toward crypto spot products. Recent spot Bitcoin and Ethereum ETF approvals strengthen this outlook.

NYSE Arca’s July proposal to simplify crypto ETP listings could support a faster approval process. If adopted, Grayscale believes GLNK ETF meets the listing requirements. This would establish a precedent for other altcoin ETFs.

Grayscale aims to bring mainstream access to Chainlink via the GLNK ETF. Its strategy combines regulatory compliance, flexible operations, and institutional-grade partners. The GLNK ETF may soon become the first spot Chainlink ETF on a U.S. exchange.

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