SEC Application Filed for Grayscale Chainlink Spot Fund Launch
Grayscale Proposes New ETF for Chainlink
Grayscale, a digital asset manager, has filed an application with the U.S. Securities and Exchange Commission (SEC) to convert its Chainlink trust into a spot-based exchange-traded fund (ETF). If approved, the GLNK ETF will provide a regulated and accessible way for investors to invest in Chainlink without the need for cryptocurrency wallet management.
The GLNK ETF will initially track Chainlink's price without distributing tokens to investors, offering a simpler and safer way for retail investors to include Chainlink in their portfolios. Galaxy Digital and Jump Crypto will provide the infrastructure for the GLNK ETF, while Multicoin Capital will offer additional expertise on Solana and other altcoins.
Chainlink, a decentralized oracle network, plays a crucial role in the DeFi (decentralized finance) ecosystem, connecting blockchains to real-world data. Its proposed ETF reflects growing demand for diverse crypto assets and could attract institutional investors, increasing liquidity for Chainlink.
Creating a spot ETF allows investors to benefit from Chainlink's growth without directly handling tokens. Unlike a cash-based ETF in digital currencies, the GLNK ETF will actually buy and hold the cryptocurrencies themselves, giving investors direct exposure and ownership of the coins. This could serve as a benchmark for altcoin investments and pave the way for new regulated crypto funds.
If approved, the fund will trade on NYSE Arca under the ticker GLNK. Grayscale plans to offer investors the ability to receive actual LINK tokens in the future. This move is part of Grayscale's broader strategy to launch spot ETFs for a range of altcoins, including AVAX, DOGE, LTC, SOL, and XRP, expanding beyond bitcoin and ether into the altcoin ETF market.
However, the SEC is cautious about approving spot ETFs, and Grayscale's application is part of ongoing discussions on integrating digital assets into traditional markets. The new GLNK ETF could set a model for accessible, transparent, and regulated crypto products for years to come.
