Chainlink’s spot ETF filing by Bitwise triggers a 5% price bounce for LINK, as the proposed Bitwise Chainlink spot ETF aims to custody tokens with Coinbase Custody and could open institutional demand channels for Chainlink if approved by the SEC.
Price reaction: LINK rose about 5% after the Bitwise spot ETF filing.
Custody plan: Bitwise intends to use Coinbase Custody Trust Company for on-chain storage.
DeFi impact: Chainlink partnerships and a reserve above 150,000 LINK underpin ecosystem confidence.
Chainlink spot ETF: Bitwise files S-1 for a LINK spot ETF; approval could boost institutional inflows and DeFi adoption — read implications and next steps.
What is the Bitwise Chainlink spot ETF filing?
Chainlink spot ETF refers to Bitwise’s S-1 filing with the U.S. Securities and Exchange Commission proposing a fund that holds LINK tokens directly, custodying them via Coinbase Custody Trust Company. If approved, the ETF would allow traditional investors easier exposure to Chainlink and potentially increase institutional capital inflows.
How did markets react to the filing?
On Tuesday, August 26, Chainlink (LINK) rebounded roughly 5% from an intraday low of $22.94, trading near $23.96 during the session. TradingView data shows the uptick closely followed Bitwise’s S-1 submission, signaling short-term buying on perceived institutional demand catalysts.
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The S-1 indicates the proposed ETF will support both cash-based and in-kind creation/redemption mechanisms. The fund would not engage in active trading of LINK beyond rebalancing tied to creation/redemption. For the product to list, an exchange must submit a Form 19b-4 to begin the SEC’s review.
Using Coinbase Custody Trust Company provides a regulated, institutional-grade custody solution and may ease trustee and operational concerns for the SEC and investors. Institutional custody reduces counterparty risk and helps meet compliance and audit requirements for large asset managers.
Bloomberg analyst commentary and TradingView price signals highlight that this is the first true spot ETF filing for Chainlink, distinct from prior leveraged ETF proposals. Chainlink’s on-chain initiatives — including a reported reserve surpassing 150,000 LINK and partnerships such as a collaboration with SBI Group on cross-chain projects — add supply-side credibility to the narrative.
After an exchange files a Form 19b-4 to list the ETF, the SEC begins a review period that typically includes an initial evaluation, public comment windows, and potential amendments. Timing varies; the process can take several months and concludes with an approval, denial, or request for further information.
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Source: https://en.coinotag.com/chainlink-may-rise-after-bitwise-spot-etf-filing-with-coinbase-custody-supported-by-defi-partnerships/