The filing, submitted on September 5, 2025, seeks to list the fund on NYSE Arca under the ticker GLNK.

The move puts Grayscale in direct competition with Bitwise Asset Management, which filed for its own Chainlink ETF in August 2025. Both companies are racing to launch the first U.S. spot ETF focused on LINK, the native token of the Chainlink oracle network.

Grayscale’s existing Chainlink Trust currently manages approximately $29 million in assets. The proposed ETF would allow both institutional and retail investors to gain exposure to LINK without dealing with the technical challenges of buying and storing the cryptocurrency directly.

Strong Technical Foundation Drives Interest

Chainlink operates as a decentralized oracle network that connects blockchain smart contracts to real-world data. The platform serves as critical infrastructure for the crypto ecosystem, enabling applications in decentralized finance, insurance, and cross-chain transactions.

Recent data shows Chainlink leading all DeFi projects in development activity, with over 311 notable developments in the past 30 days. This high level of technical progress includes major upgrades like the recent Staking v0.2 rollout.

The network has secured partnerships with major financial institutions including JPMorgan, Visa, Mastercard, and Swift. These collaborations highlight Chainlink’s role in bridging traditional finance with blockchain technology.

LINK currently ranks as the 13th largest cryptocurrency by market capitalization, with a valuation near $15.1 billion. The token trades around $22.29, maintaining its position despite recent market volatility.

Government Partnership Validates Enterprise Adoption

Chainlink recently announced a partnership with the U.S. Department of Commerce to deliver official macroeconomic data on-chain. This collaboration marks the first time a cryptocurrency project has directly integrated with U.S. government data systems.

The partnership validates Chainlink’s enterprise-grade capabilities and positions it as critical infrastructure for the emerging digital economy. Government endorsement could accelerate institutional adoption as traditional finance companies seek regulated exposure to blockchain technology.

Supply Constraints Create Bullish Setup

Market data reveals favorable supply-demand dynamics for LINK. Currently, 87.5% of Chainlink’s circulating supply sits in profit, reducing selling pressure from holders. Exchange reserves have dropped to multi-year lows of 161.5 million tokens.

The Chainlink Reserve mechanism has already removed 237,014 LINK tokens worth $5.5 million from circulation. This deflationary pressure, combined with potential ETF demand, could trigger significant price movements if institutional money flows into the market.

Analysts project that ETF approval could inject $2.25 billion in new capital into LINK markets. Historical precedent from Bitcoin and Ethereum ETFs suggests substantial price appreciation following institutional adoption.

Regulatory Environment Improves for Crypto ETFs

The SEC under the Trump administration has taken a more favorable stance toward digital assets. Chairman Paul Atkins launched “Project Crypto” in July 2025 to modernize the agency’s approach to digital finance.

Source: sec.gov

The regulatory environment has improved significantly since Grayscale successfully converted its Bitcoin and Ethereum trusts into spot ETFs in early 2024. These approvals created precedent for additional cryptocurrency investment products.

Grayscale’s filing depends on NYSE Arca’s proposed generic listing standards for crypto ETPs. These standards would allow certain digital asset products to list without case-by-case SEC approval, streamlining the process for future filings.

The shortened SEC review timeline of 75 days also accelerates approval prospects compared to previous years. Multiple asset managers including VanEck, 21Shares, and Franklin Templeton have filed similar applications for various cryptocurrency ETFs.

ETF Structure Mirrors Successful Models

Both Grayscale and Bitwise have structured their Chainlink ETFs to mirror successful Bitcoin and Ethereum funds. The products would use cash-based creation and redemption processes, with Coinbase Custody serving as the custodian for underlying tokens.

Grayscale’s filing includes potential for in-kind redemptions if future regulations permit. The fund may also engage in staking activities once regulatory and tax conditions are satisfied.

The ETF structure removes technical barriers that prevent many institutional investors from accessing cryptocurrencies directly. Traditional pension funds, hedge funds, and asset managers can gain LINK exposure through familiar investment vehicles.

What This Means for Crypto Markets

The Chainlink ETF filings signal expanding institutional interest beyond Bitcoin and Ethereum. Asset managers are seeking exposure to infrastructure tokens with clear utility and real-world applications.

Chainlink’s role as foundational blockchain infrastructure makes it attractive to institutional investors who prefer assets with tangible use cases over speculative tokens. The network secures over $59.56 billion in value across 458 protocols.

Competition between Grayscale and Bitwise may accelerate SEC decision-making as both firms push for first-mover advantage. Success for either filing could open doors for additional altcoin ETFs focused on Solana, XRP, and other major cryptocurrencies.

The institutional adoption of Chainlink through regulated ETFs represents the next phase of crypto market maturation, moving beyond early adopters to mainstream financial institutions.

---

Filed under: Bitcoin - @ September 8, 2025 11:40 pm