Grayscale has taken a significant step in the cryptocurrency investment landscape by filing a proposal with the U.S. Securities and Exchange Commission (SEC) to convert its existing Chainlink Trust into a spot exchange-traded fund (ETF). This proposed ETF, which would be designated to trade on NYSE Arca under the ticker symbol GLNK, emerged in an S-1 registration statement submitted to the regulator on Monday.
This filing is one of the two essential documents required for formalizing an ETF application. Notably, Chainlink’s LINK token has experienced a 3% increase over the last 24 hours, aligning with a general surge in altcoins, including XRP, which climbed by 2.6%, Solana with a 5% rise, and Dogecoin up by 7.4%.
In addition, Grayscale’s filing outlines a potential staking feature that could significantly enhance the fund’s attractiveness. If approved, the ETF might utilize third-party staking providers while maintaining LINK tokens within custodian wallets. The benefits from staking, including rewards, could either be retained within the fund, distributed to shareholders, or sold to manage expenses, depending on forthcoming regulatory guidance.
This ETF would evolve from the Grayscale Chainlink Trust, established in February 2026 and currently overseeing nearly $29 million in assets. The custodian for the fund will be Coinbase Custody Trust Company. Grayscale indicated that the ETF would manage share creations and redemptions in cash, adopting a structure similar to recently authorized spot bitcoin and ethereum ETFs. Nevertheless, the filing leaves open the possibility for in-kind redemptions if regulations allow in the future.
This initiative is part of Grayscale’s broader strategy to transition several of its single-asset crypto trusts into ETF structures. Other pending proposals from the firm include funds associated with Solana, Dogecoin, and XRP, all of which have yet to receive approval or denial from the SEC under Chair Paul Atkins. Despite the agency’s current indecision, various firms are moving forward with products they hope could rank among the earliest in their asset classes.
If the GLNK ETF receives approval, it would grant traditional investors regulated access to Chainlink’s price performance. This could be particularly significant given Chainlink’s role in providing decentralized data feeds for blockchain applications and smart contracts. Moreover, the potential introduction of a staking component would introduce an income element that is not commonly available in most U.S. crypto ETFs.
As the market reacts positively to the news, LINK has emerged as one of the stronger performers among major cryptocurrencies, signaling optimism about Grayscale’s latest venture and its implications for the broader crypto market.
