Isabella García
Grayscale Investments has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), aiming to launch one of the first spot Chainlink ETFs in the country. The fund would be a conversion of the existing Grayscale Chainlink Trust, with Coinbase Custody Trust Company acting as custodian. If approved, the ETF would trade on NYSE Arca under the ticker GLNK.
Unlike traditional crypto ETFs, the proposed Grayscale Chainlink ETF could incorporate a staking mechanism, provided regulatory and tax conditions are favorable. This feature would allow a portion of LINK holdings to be staked through third-party providers, while assets remain secured in custodian wallets. Rewards from staking could be retained, sold, or distributed to investors, potentially generating additional yield opportunities.
The filing confirms that share creations and redemptions will be handled in cash rather than in-kind, similar to recently approved spot Bitcoin and Ethereum ETFs. However, Grayscale noted that in-kind transactions may be supported in the future if regulatory approval is granted.
Why Chainlink Matters
Chainlink is a leading decentralized oracle network that connects blockchains to real-world data such as asset prices, weather, and events. Its native token, LINK, is used to pay node operators and secure the network through staking.
In August, Chainlink introduced a strategic LINK reserve funded by both on-chain and off-chain revenues, designed to strengthen long-term sustainability and ecosystem growth.
Grayscale Expands Its Spot ETF Ambitions
The Chainlink ETF filing is part of Grayscale’s broader expansion into crypto ETFs. In recent weeks, the firm has submitted applications for Avalanche (AVAX) and Dogecoin (DOGE) ETFs, adding to previous filings for Litecoin, Solana, and XRP. Notably, Grayscale’s Bitcoin and Ethereum Trusts were successfully converted into spot ETFs following SEC approval in 2024.
Competition Among Asset Managers
Grayscale isn’t alone in this push. 21Shares, Bitwise, Franklin Templeton, VanEck, Canary Capital, and REX Shares have also lined up filings for spot crypto ETFs across multiple assets including Cardano, Polkadot, Hedera, Dogecoin, Solana, and XRP. Bitwise even filed for a competing Chainlink ETF last month.
Regulatory Landscape Under New Administration
The surge in ETF filings coincides with a more crypto-friendly stance under the Trump administration, which many analysts expect to be more receptive than regulators under the previous Biden era.
LINK Market Performance
At the time of writing, LINK is trading 5% higher at $23.14, according to PRIME’s price data, reflecting increased market optimism around both Chainlink’s growth and the ETF filing.
