Asset manager Bitwise has recently filed an application to launch a spot Chainlink exchange-traded fund (ETF) in the United States, as per an August 26 filing with the Securities and Exchange Commission (SEC). The proposed Bitwise Chainlink ETF would issue shares that represent fractional interests in Chainlink held by the trust. These shares are anticipated to be listed on a national securities exchange, although the specific ticker has not been disclosed yet.
If approved, this ETF would be the first of its kind in the US, providing direct exposure to the digital asset Chainlink. Chainlink has emerged as one of the most widely used decentralized oracle networks, facilitating off-chain data supply to smart contracts on Ethereum and other blockchain networks. The LINK token, which ranks 11th in terms of market cap, is the backbone of this ecosystem, compensating node operators for fetching external information and executing computations. In addition to its presence in the blockchain space, Chainlink has also ventured into traditional finance, forming partnerships with major institutions like Swift, Visa, Mastercard, and JPMorgan, driving significant institutional interest in the digital asset.
Bitwise stated that the objective of the ETF is to mirror the value of Chainlink’s LINK token held in custody, after factoring in fees and expenses. The fund will be passively managed, meaning that the sponsor will not engage in active trading strategies or hedging techniques typically employed by professional investors. The pricing of the fund will be based on the CME CF Chainlink–Dollar Reference Rate (New York Variant), a benchmark published daily by CF Benchmarks Ltd. Coinbase Custody Trust Company has been appointed as the custodian for the underlying tokens.
By introducing this ETF, Bitwise aims to bridge the decentralized infrastructure of Chainlink with regulated markets, offering investors a convenient way to gain exposure to this digital asset. If the filing is approved, it will not only broaden investor access beyond traditional Bitcoin and Ethereum ETFs but also underscore the increasing demand for exposure to assets that play a fundamental role in decentralized finance.
In conclusion, the Bitwise Chainlink ETF represents a significant step towards integrating blockchain technology with mainstream financial markets, showcasing the ongoing evolution of the digital asset landscape.