Grayscale is the second asset manager to file for a Chainlink ETF with the U.S. Securities and Exchange Commission. The LINK price is up amid this development, rising 2% today.
Grayscale Files S-1 For Chainlink ETF
A SEC filing shows that the asset manager has filed its registration statement for its Grayscale Chainlink Trust (LINK), which it aims to convert into an ETF. According to the filing, the fund will list and trade on the New York Stock Exchange (NYSE) Arca.
Notably, Grayscale is aiming for the Chainlink ETF to list in line with the proposed Generic Listing Standards for Crypto ETFs. Under this listing standard, a crypto ETF may list on an exchange without the need for a 19b-4 filing to list and trade shares of this fund.
The asset manager noted in the filing that it believes that the shares of its LINK ETF would qualify for listing and trading on the NYSE if the SEC approves the Generic Listing Standards.
In line with this, Grayscale doesn’t plan to seek the effectiveness of this registration statement until the SEC adopts the proposed rule change or if it determines that such approval is not necessary. The firm also stated that it has prepared the prospectus for its Chainlink ETF based on a potential approval of these Generic Listing Standards.
Grayscale becomes the second fund issuer to file for a LINK ETF under the 33 Act. As CoinGape reported, Bitwise’s LINK ETF filing was the first under the Act. Meanwhile, Tuttle had earlier filed for a 2x LINK ETF under the 40 Act.
Details About The LINK ETF
The Grayscale Chainlink ETF’s purpose is to hold LINK and provide institutional investors with exposure to the crypto token. The Bank of New York Mellon will be the transfer agent and administrator of the Trust. Meanwhile, top crypto exchange Coinbase is the prime broker of the Trust, and its Custody arm will be the Trust custodian.
The shares of the LINK ETF will list on the NYSE Arca under the symbol “GLINK.” Grayscale is also seeking to offer in-kind creation and redemptions for the fund, although the SEC has yet to approve this. Furthermore, the Tust may also engage in staking if the staking condition has been satisfied, which isn’t the case as of now.
However, the SEC is likely to approve in-kind creation and redemption, considering that it already approved it for the Bitcoin ETFs. Meanwhile, the Commission has declared that staking activities aren’t securities and may permit staking for these funds.
The LINK price has rebounded amid Grayscale’s Chainlink ETF filing. TradingView data shows that the token is trading at around $23, up over 3% in the last 24 hours.
Boluwatife Adeyemi
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Source: https://coingape.com/grayscale-files-for-chainlink-etf-with-sec-link-price-rebounds/