The race to expand crypto exchange-traded products beyond the market’s two giants has taken another step.
Bitwise Asset Management has filed paperwork with U.S. regulators to launch a fund tied directly to Chainlink’s LINK token, marking one of the first ETF attempts centered on blockchain infrastructure rather than a pure currency.
Beyond Bitcoin and Ethereum
Wall Street has so far been dominated by bitcoin and ether ETFs, but asset managers are now experimenting with tokens that underpin core Web3 services. Chainlink’s role as the leading oracle network—delivering real-world data like prices and events to blockchains—makes LINK a candidate that appeals to institutions seeking diversified exposure.
Bitwise’s submission to the SEC describes a trust designed to mirror LINK’s market price. Custody would be handled by Coinbase Custody Trust, while Coinbase, Inc. is set to act as the primary trading agent. Shares of the product are expected to debut on a national exchange, though the listing venue was not identified.
A Straightforward Spot Fund
Unlike other token-based strategies, the proposed ETF avoids staking or validator rewards altogether. Despite recent SEC guidance clarifying that staking is not a securities law violation, the registration statement sticks to the simplest design: direct exposure to LINK’s spot value.
The filing also details mechanisms for both cash and in-kind redemptions, relying on a “Trust-Directed Trade” system facilitated by Coinbase to create and retire shares.
Why Chainlink Matters
Chainlink has become indispensable in decentralized finance. Its oracles act as the connective tissue between smart contracts and external information, powering services from lending protocols to derivatives platforms. LINK tokens secure the network through proof-of-stake and incentivize node operators that provide the feeds.
Bitwise CIO Matt Hougan has previously singled out Chainlink as a standout bet on the future of tokenization, describing LINK as one of the “cleanest” crypto plays in a July research note. His view is that as real-world assets move onchain, Chainlink’s middleware will form the backbone of that transition.
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Source: https://coindoo.com/wall-street-eyes-chainlink-bitwise-pushes-for-first-link-etf/