crypto-news-flash.com
- SEC records confirm Grayscale has submitted paperwork to create a Chainlink exchange-traded fund.
- This comes as the SEC has pushed back its timeline on two altcoin ETF applications: Canary HBAR and Grayscale Polkadot.
After finally securing long-awaited Securities and Exchange Commission (SEC) approval in 2024 to convert its flagship Bitcoin (BTC) and Ethereum (ETH) trusts into spot Exchange Traded Funds (ETFs), Grayscale, the world’s largest digital asset investment manager, is now turning its attention to the altcoin market.
The firm has recently filed for spot ETFs tied to Avalanche (AVAX )and Dogecoin (DOGE). These are adding to earlier applications that are tied to Ripple (XRP), Litecoin (LTC), and Solana (SOL). On top of that, Grayscale has just introduced a new product: the Grayscale Ethereum Covered Call ETF (ETCO).
Now, Grayscale is turning its attention to Chainlink (LINK). The firm has filed for a new Grayscale Chainlink Trust ETF, a conversion of its existing Chainlink Trust. If approved, the fund would trade on NYSE Arca under the ticker GLNK, giving traditional investors direct exposure to LINK, the native token that powers Chainlink’s decentralized oracle network.
As per the filing, Coinbase Custody Trust Company is set to act as the custodian.
ETF Cash-Based Structure
One of the more interesting details in the filing is that the fund may stake a portion of its LINK holdings, provided tax and regulatory conditions allow it. Staking would be handled through third-party providers, while the underlying assets remain securely in custodian wallets. Any rewards earned could either be retained, sold, or distributed back to investors, a move that could introduce an additional yield component to the ETF.
Similar to existing spot Bitcoin and Ethereum ETFs, the proposed Chainlink ETF would process creations and redemptions in cash rather than in-kind transfers. This structure is designed to keep things more straightforward for both regulators and market participants.
Grayscale isn’t the only one chasing Chainlink exposure. Crypto News Flash reported on August 26 that Bitwise filed to launch its own spot Chainlink ETF. Unlike Grayscale, however, Bitwise’s filing made no mention of staking LINK, despite the SEC recently clarifying that staking activity does not necessarily conflict with federal securities laws.
As financial institutions show more interest in the crypto market, the U.S. Securities and Exchange Commission has once again pushed back its decision on altcoin ETFs. According to the latest filings, Canary’s spot HBAR ETF faces another delay.
The SEC had already postponed the approval in April and June, and now it’s extending the review by an additional 60 days, setting November 8 as the final deadline to either approve or reject the fund. The regulator also extended the timeline for Grayscale’s Polkadot (DOT) ETF, aligning its decision date with the same November 8 deadline.
Meanwhile, LINK continues to gain ground. CNF highlights recent positive developments, including the Chainlink co-founder Sergey Nazarov’s meetings with SEC Chairman Paul Atkins and senior White House policymakers, where discussions focused on strengthening the U.S. role in tokenized assets through proper regulation and compliance.
Given Chainlink’s leadership in tokenization, LINK is increasingly being positioned as a strong candidate for the projected $30 trillion market.
Market watchers are optimistic, with forecasts suggesting Chainlink’s total value locked (TVL) could surge to $52.7 billion by the end of 2025. So far this year, LINK has already delivered gains of 125%. At press time, it remains up 3.85% over the past 24 hours, trading at $23.
Recommended for you:
- Chainlink (LINK) Wallet Tutorial
- Check 24-hour LINK Price
- More Chainlink News
- What is Chainlink?