- Bitwise’s planned Chainlink ETF (ticker CLNK) appeared on the DTCC pre-launch list.
- The listing often signals nearing approval, though SEC clearance is still pending.
Bitwise’s planned exchange-traded fund (ETF) tracking Chainlink pushed a step closer this week when it appeared in an important regulatory database. The Bitwise Chainlink ETF was in the Depository Trust and Clearing Corporation registry, signalling that approval is nearing. This all comes as dozens of cryptocurrency investment vehicles are awaiting regulatory approval while the government’s funding hurdles continue.
DTCC Registry Addition Points Toward Imminent Approval
On Tuesday, the Bitwise Chainlink ETF began existence on the DTCC (Depository Trust & Clearing Corporation) active and pre-launch list under the ticker symbol CLNK. The DTCC doesn’t guarantee SEC (Securities and Exchange Commission) approval just because the registry appears on the list, but historically, this often leads to momentum towards product approval. The DTCC is an important post-trade infrastructure responsible for clearing, settling, and recording trades in financial markets. Importantly, Bitwise has not yet submitted Form 8-A, the regulatory filing that must be done before any securities can start trading on any exchange.
The asset manager filed its Form S-1 registration statement with the SEC for this product back in August. The planned ETF would track Chainlink’s native token, which fuels a decentralized oracle network that provides real-time information to blockchain smart contracts. Grayscale has also sought a similar investment product focusing on Chainlink, whose version includes staking features that could subject it to additional scrutiny.
The approval process has experienced major slowdowns because of the federal government shutdown, which is now in its 42nd day. There is some hope that the Senate will pass a funding bill, meaning the market may see operations resume soon and possibly expedite the approval process for cryptocurrency investment products that are pending. Asset managers are submitting numerous applications for funds that track different digital assets with the anticipation of interest from investors.
Market watchers expect there will be broader approval now that the SEC has implemented generic listing standards for cryptocurrency products last September, which eliminates the need for case-by-case reviews, simplifying the approval process substantially. Unfortunately, the government shutdown began shortly after publication and curtailed the practical application of those standards after that point.
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