Bitwise filed for a Chainlink ETF that would directly hold LINK tokens, with Coinbase Custody Trust Company named as custodian. The ETF would permit in-kind creation and redemption, letting investors exchange LINK for shares and vice versa, subject to SEC approval and fund rules.
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ETF structure: directly holds LINK; custodied at Coinbase Custody Trust Company.
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Allows in-kind creation and redemption, reducing market impact on large trades.
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Bitwise’s prior Bitcoin and Ethereum ETFs show strong inflows: $2.2B and $461M net, respectively (company filings).
Chainlink ETF: Bitwise files for a LINK ETF with Coinbase custody — learn structure, custody, and market signal. Read next steps to monitor approval.
What is a Chainlink ETF and how would Bitwise’s filing work?
Chainlink ETF is a proposed exchange-traded fund designed to hold LINK tokens directly, offering investors regulated exposure to Chainlink without custody hassles. Bitwise’s filing names Coinbase Custody Trust Company as custodian and proposes in-kind creation/redemption, enabling token-for-share swaps if approved by the SEC.
How does custody and in-kind creation work for a Bitwise Chainlink ETF?
The filing doesn’t yet list a ticker, but says the ETF would use Coinbase as its custodian. Coinbase Custody Trust Company would hold the underlying LINK tokens in segregated accounts under trust governance.
In-kind creation and redemption allows authorized participants to deliver LINK to the fund in exchange for shares, and redeem shares to receive LINK back. This mechanism can limit trading friction and reduce taxable events for large institutional flows.
Why does the custodian matter for a LINK ETF?
Custody determines security, regulatory compliance, and investor trust. Coinbase Custody Trust Company is named in the filing and is the same custodian used by several major U.S.-listed crypto ETFs, which can reassure institutional investors about custody controls.
Custodial safeguards, insurance arrangements, and audit trails are primary factors the SEC assesses for approval.
What market data accompanied the filing?
At filing time, LINK traded near $24.27, down about 1.1% over 24 hours, per price aggregator CoinGecko (plain text mention). One-day trading volume dipped roughly 14.3% to $3.8 billion, per Coinglass (plain text mention), while open interest eased about 5% to $1.7 billion.
Bitwise’s Bitcoin and Ethereum ETFs have seen $2.2 billion and $461 million in net inflows, respectively, indicating issuer experience in crypto ETF management.
Frequently Asked Questions
Will the ETF have a ticker and when will it trade?
The filing doesn’t yet list a ticker. A ticker and launch date are typically announced after SEC review and post-approval operational steps; timelines vary depending on regulatory feedback.
Can investors receive LINK when redeeming shares?
Yes — the filing proposes in-kind redemption, which would allow authorized participants to receive LINK tokens in exchange for ETF shares, subject to the fund’s specific rules and liquidity conditions.
Key Takeaways
- Custody: Bitwise names Coinbase Custody Trust Company to hold underlying LINK tokens.
- Structure: The ETF would directly hold LINK and permit in-kind creation and redemption.
- Market context: LINK price and derivatives metrics showed modest pullbacks at filing; Bitwise brings prior ETF experience and inflows.
Conclusion
Bitwise’s Chainlink ETF filing signals growing institutional productization of native crypto tokens. The filing’s use of Coinbase Custody and in-kind mechanisms aligns the product with market best practices, but final approval by the SEC will determine timing and investor access. Follow COINOTAG coverage for updates and filing developments.
Published by COINOTAG — Published: 2025-08-26 — Updated: 2025-08-26
