The Bitwise Chainlink ETF has been added to the Depository Trust & Clearing Corporation (DTCC) eligibility list under the ticker CLNK, signaling a significant step in the ETF’s journey toward potential trading. This listing is part of the customary clearing and settlement preparations; however, it does not indicate that the ETF has obtained regulatory approval from the Securities and Exchange Commission (SEC).
With regulatory approval pending, the addition to the DTCC list places the Bitwise Chainlink ETF in a position to enter trading once authorization is granted. This move resonates with broader trends in asset management, focusing on the introduction of blockchain-linked investment products with institutional support. If approved, the ETF could provide substantial institutional access to the Chainlink network, which in turn may enhance market liquidity and demand for the LINK token.
Currently, LINK, the twelfth-largest digital asset by market capitalization, is trading at approximately $15.45. Notably, it has experienced a nearly 5% decline in the past 24 hours and a significant 19.2% drop over the previous month. The announcement of the ETF listing has spurred increased trading volume, a sign of rising interest from both retail and institutional traders.
In its S-1 filing with the SEC, Bitwise disclosed that Coinbase Custody Trust Company would act as the custodian for the Chainlink fund. An appealing feature of this ETF is its support for in-kind creation and redemption, allowing investors to purchase shares using LINK and receive the token upon selling their shares.
In addition to the Chainlink ETF, Bitwise is actively pursuing approvals for ETFs focused on other cryptocurrencies, including Solana, XRP, and Dogecoin. As of now, Bitwise’s Bitcoin ETF manages more than 40,730 BTC—valued at around $2.3 billion—while its Ethereum ETF holds upwards of 113,605 ETH, worth approximately $385 million.
The interest in Chainlink ETFs is growing, with other firms, including Grayscale, also considering proposals for similar products. Grayscale’s proposed spot Chainlink ETF would be listed on the NYSE Arca with the ticker GLNK, representing further institutional interest in the sector.
This move by Bitwise follows its introduction of the Solana Staking ETF, which garnered significant attention, attracting over $420 million in its first week alone. A recent prediction from JPMorgan suggests that altcoin ETFs could draw as much as $14 billion within their first six months, with a notable portion expected to flow into Solana-linked products. Bitwise’s Chief Investment Officer, Matt Hougan, emphasized the company’s commitment to following regulatory protocols, even while aiming to be a front-runner in the space.
Moreover, Bitwise is not alone in its pursuit of cryptocurrency ETFs. Other investment firms, including Franklin Templeton, Canary Capital, 21Shares, and CoinShares, have filed to launch ETFs associated with Ripple’s XRP. Recently, the DTCC listed five XRP funds as active and in the pre-launch phase. Similar to the Chainlink ETF, the listing does not guarantee SEC approval but marks a critical step toward an official launch.
The listing of these XRP funds led to a marked market response, with on-chain data illustrating a spike of nearly 12% in XRP’s value shortly after the announcement. As of now, XRP is trading at around $2.40, reflecting a 3.33% decline in the last 24 hours and a more than 5.7% dip over the past month.
Senior ETF analyst Eric Balchunas of Bloomberg Intelligence has indicated that ETFs reaching the DTCC listing phase often progress to launch, particularly if the regulatory environment proves conducive. This sentiment comes amid recent changes in the SEC’s ETF review procedures during the ongoing U.S. government shutdown. Adjustments allow issuers to submit coordinated amendments to their filings, leading to speculation that the debut of crypto funds could be imminent once the government operations resume.
