Bitwise has unveiled plans to introduce its own Chainlink ETF, designated as CLINK, signaling increasing institutional interest in LINK and suggesting the speculation surrounding it is giving way to tangible demand. This move follows Grayscale’s earlier attempt to gauge market appetite through its GLINK product launched in mid-December, indicating that the desire for LINK investment extends beyond a single issuer.
The timing of Bitwise’s announcement plays a crucial role in this market context. Recently, LINK experienced a slight pullback, which allowed it to address a long-stand market imbalance around the $13 mark on daily charts. Instead of generating panic among investors, this retracement appears to have provided a reset, leading to renewed buying activity and momentum. Analysts suggest that this dip has steadied the market structure rather than signaling a breakdown.
Recent inflows into LINK ETFs further support the notion of robust demand. Grayscale’s LINK ETF has recorded approximately $63 million in inflows within a 24-hour period, showcasing a significant capital movement. This is particularly important given the current market’s selective nature in terms of investment flows.
Moreover, LINK’s Open Interest (OI) has displayed an upward trend, underscoring an increasing institutional involvement as opposed to short-term speculative trading. In just one day, the network’s OI surged to approximately $250.578 million.
Liquidity data adds another dimension to the LINK landscape. A notable liquidity cluster amounting to $1.2 million remains intact near the $15 price zone. Historical trends indicate that such areas often act as attractive targets for traders as momentum builds and volatility rises. As LINK stabilizes above $13, the likelihood of price movement towards the $15 zone appears more credible.
The introduction of an ETF would enhance the credibility, accessibility, and liquidity of LINK. The current price action aligns with recent developments in the network, gaining momentum from the critical imbalance around the $13 level. However, it is essential for LINK to maintain its position above this area to sustain a bullish outlook. If successful, ongoing ETF inflows and rising interest from derivatives could further propel LINK upward in the immediate future.
In conclusion, the announcement of Bitwise’s ETF underscores a growing institutional interest in LINK, bolstered by proven demand reflected in Grayscale’s inflows. The price structure remains constructive as LINK holds firm above the $13 mark, setting the stage for potential future gains.
