Chainlink ETF Incoming? Bitwise Files Groundbreaking S-1 With SEC

TLDR

• Bitwise files for first U.S. spot Chainlink ETF, expanding beyond BTC & ETH.
• Chainlink ETF filing by Bitwise signals altcoin ETF growth in U.S. markets.
• Bitwise seeks SEC nod for Chainlink ETF with direct LINK token backing.
• First-ever U.S. Chainlink ETF filing aims to broaden regulated crypto access.
• Bitwise’s Chainlink ETF bid could redefine altcoin exposure for institutions.

Bitwise Asset Management has filed a preliminary S-1 registration with the U.S. Securities and Exchange Commission for a Chainlink ETF. The filing aims to launch a spot ETF that offers direct exposure to Chainlink without requiring token custody. If approved, this will mark a significant expansion of crypto ETF offerings beyond Bitcoin and Ethereum.

Bitwise Moves to Launch Spot Chainlink ETF

Bitwise submitted the filing, intending to list the Chainlink ETF on a U.S. equities exchange, though the platform remains undisclosed. The ETF seeks to reflect the spot market value of Chainlink, excluding fees and other operating costs. It will use the CME CF Chainlink–Dollar Reference Rate (New York Variant) to calculate its net asset value.

The fund’s sponsor, Bitwise Investment Advisers, confirmed that it will provide seed funding for the launch. However, the firm has not disclosed the value or source of this capital at this stage. While management fees apply, the specific percentage remains undisclosed in this preliminary stage.

Coinbase Custody Trust Company will hold the Chainlink tokens backing the ETF on behalf of the trust. Each share of the Chainlink ETF will represent actual ownership of LINK tokens held by the fund. This structure allows institutions to gain exposure without direct crypto handling.

ETF Structure and Industry Context

Bitwise proposed that shares will be created and redeemed in large baskets of 10,000 shares each. These transactions will be conducted exclusively through authorized participants. The filing states the Chainlink ETF will be cash-settled, but could allow in-kind redemptions in exceptional cases.

Although Chainlink operates on a Proof-of-Stake model, Bitwise has chosen not to stake the tokens in the ETF. Therefore, holders will not earn rewards linked to staking. This decision simplifies the regulatory structure but could impact yield opportunities.

This marks the first known filing for a spot Chainlink ETF in the United States. Bloomberg’s Eric Balchunas noted the contrast with Tuttle Capital’s leveraged product, which does not hold LINK tokens. Tuttle’s ETF offers twice the daily exposure but lacks the physical backing present in Bitwise’s fund.

Chainlink’s Market Role and Implications

Chainlink functions as a decentralized oracle network for connecting smart contracts to real-world data. It supports decentralized finance, gaming, NFTs, and cross-chain tools with services like verifiable randomness and automated execution. Its infrastructure role has made LINK a dominant asset in the crypto market.

The Chainlink ETF follows growing demand for regulated exposure to altcoins. Previously, Grayscale’s Chainlink Trust served a similar role but lacked liquidity and price accuracy. The Bitwise ETF could improve on this with better tracking and more market access.

LINK’s price recovered to $23.54 following the ETF announcement, halting its recent decline amid market-wide weakness. LINK is now among the top five “Made in USA” crypto assets by market cap. The token remains central to the real-world asset tokenization trend.

The SEC has yet to set a timeline for a decision, but Bitwise continues expanding its ETF portfolio, which includes pending proposals for Solana, XRP, and Dogecoin. The Chainlink ETF could be a pivotal step toward broader adoption of on-chain data infrastructure assets.

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