Grayscale has received clearance to move ahead with the first spot Chainlink ETF. This would be the third fund launched by the asset manager in just two weeks. The product comes amid rising adoption of the token.
Grayscale Set to Launch First Spot Chainlink ETF This Week
Grayscale’s Chainlink Trust is about to get turned into a fully tradable exchange-traded fund. According to ETF analyst Nate Geraci, who shared the news on X, approval for uplisting has been granted.
The new structure will allow the trust to convert and list on NYSE Arca. That would provide investors with regulated access to LINK by way of a familiar market instrument.
The green light also comes after Grayscale submitted its registration statement in late September. At the time, the firm filed an S-1 to formalize the conversion of the trust into the Chainlink ETF.
Additionally, the new debut would be Grayscale’s third ETF launch in just two weeks. It had also launched similar funds related to XRP and Dogecoin of late.
Grayscale’s GLNK stands out because it offers a staking feature but also raised concerns from regulators. Analysts said the SEC still has a number of open questions regarding how yield-related processes should work in digital-asset funds.
By contrast, Bitwise’s product, CLNK, doesn’t contain staking and has already been listed on the DTCC registry. The Chainlink ETF was initially said to launch before Grayscale’s.
In a report entitled “The Link Between Worlds,” Grayscale researchers Zach Pandl and Michael Zhao noted that Chainlink is becoming important in helping institutions with tokenization. The report framed LINK as the leading asset in the Utilities & Services sector of crypto.
“LINK is the largest asset by market capitalization in the Utilities & Services Crypto Sector, the ‘picks and shovels’ of on-chain finance. LINK is also the largest asset in crypto that is not a Layer 1 token,” they shared.
Institutional Adoption of Chainlink Continues to Surge
Interest in LINK has been building over the past few months. In August, CaliberCos became one of the first U.S. companies to publicly trade and use LINK as part of its corporate treasury. The company’s digital asset policy includes both long-term investment in LINK and earning rewards from network staking.
In June, Chainlink played an important role in Hong Kong’s experiments with a digital currency. Participants in a pilot program tested how to move tokenized value between Hong Kong and Australia using the Cross-Chain Interoperability Protocol (CCIP)
Chainlink’s CCIP was also tapped again by World Liberty Financial. This was for the multi-chain expansion of USD1. Such integration was intended to boost USD1’s cross-network functionality.