James Richardson
Bitwise Asset Management has officially filed a preliminary S-1 with the U.S. Securities and Exchange Commission (SEC) to launch the Bitwise Chainlink ETF. This regulated investment product is designed to mirror the performance of LINK, the native token of the Chainlink oracle network.
According to the filing, Coinbase Custody Trust Company is proposed as the custodian, while Coinbase, Inc. would serve as the prime execution agent. The fund’s shares are expected to list on a U.S. national exchange, though the exact platform has not yet been named.
How the ETF Will Operate
The S-1 outlines traditional ETF mechanics, enabling both in-kind and cash transactions through a “Trust-Directed Trade” model managed by the execution agent. The primary goal is for the ETF shares to closely track LINK’s market value.
Chainlink’s Role in the Crypto Ecosystem
Chainlink is a decentralized oracle network that delivers real-world data—such as asset prices and market feeds—to smart contracts and DeFi applications. This makes it a key bridge between blockchain platforms and external information sources.
The LINK token underpins this ecosystem, rewarding node operators and supporting governance decisions under its proof-of-stake consensus model.
No Staking Features in the Filing
Interestingly, Bitwise’s filing does not include any provisions for staking LINK, despite the SEC recently clarifying that staking does not breach federal securities laws. There is no mention of validator participation or staking rewards, suggesting the ETF will provide direct exposure to LINK’s spot price rather than a yield-focused strategy.
Expanding Beyond Bitcoin and Ethereum
The filing is part of a broader industry push to bring single-asset crypto ETFs to U.S. markets. Earlier this week, Grayscale submitted paperwork to convert its Avalanche Trust into a spot AVAX ETF, signaling increased momentum for alternative crypto investment products.
Bitwise’s Bullish Outlook on Chainlink
The LINK ETF proposal comes shortly after Bitwise CIO Matt Hougan released a July note labeling Chainlink as one of the “cleanest” crypto investments. He pointed to the growing tokenization trend as a major driver for LINK’s long-term value.
As of now, LINK trades at $23, according to PRIME’s data, down 55% from its all-time high of over $52 reached in May 2021.
