Grayscale Files for Chainlink ETF as LINK Price Gains Momentum

• Grayscale filed for a Chainlink ETF with the SEC and became the second company to pursue this investment product. 

• LINK token price jumped over 3% following the announcement and reached approximately $23. 

• Once approved, the ETF will trade as “GLINK” on NYSE Arca, but Grayscale is waiting for new generic listing standards.

Grayscale Investments has submitted a registration statement to the U.S. Securities and Exchange Commission for its Chainlink ETF. The asset management firm becomes the second company to pursue a LINK-based exchange-traded fund under the Securities Act of 1933.

The Chainlink token price responded positively to the news. According to market data, LINK climbed over 3% in the past 24 hours, reaching approximately $23.

SEC Filing Details and NYSE Listing Strategy

The Grayscale Chainlink Trust aims to convert into a publicly traded ETF on the New York Stock Exchange Arca. The fund will trade under the ticker symbol “GLINK” once approved.

Grayscale structured its filing around the proposed Generic Listing Standards for Crypto ETFs. This framework would allow cryptocurrency ETFs to list without requiring a separate 19b-4 filing process. The company plans to wait for SEC approval of these generic standards before seeking effectiveness of its registration statement.

The asset manager prepared its prospectus assuming approval of the Generic Listing Standards. This approach mirrors other crypto ETF applicants’ strategy to seek streamlined regulatory approval.

The Grayscale Chainlink ETF will hold LINK tokens to provide institutional investors with direct cryptocurrency exposure. Bank of New York Mellon will serve as the trust’s transfer agent and administrator.

Coinbase Prime acts as the fund’s prime broker, while Coinbase Custody handles token storage and security. These partnerships reflect industry-standard practices for cryptocurrency investment products.

The fund structure includes provisions for in-kind creation and redemption mechanisms. However, SEC approval for this feature remains pending. The agency previously approved similar mechanisms for Bitcoin ETFs, suggesting potential approval for LINK funds.

Market Competition and Staking Considerations

Bitwise Asset Management filed the first Chainlink ETF application under the Securities Act of 1933. Tuttle Capital Management submitted an earlier application for a 2x leveraged LINK ETF under the Investment Company Act of 1940.

Grayscale included staking provisions in its filing, though current conditions do not permit this activity. The SEC has indicated that staking activities do not constitute securities transactions. This stance may enable future staking opportunities for approved cryptocurrency ETFs.

The registration statement emphasizes Grayscale’s commitment to regulatory compliance. The company will not proceed without proper SEC authorization or determining that such approval is unnecessary.