Grayscale Files for Chainlink ETF as LINK Could List on NYSE Arca Pending SEC Approval

Grayscale has filed with the SEC for a Chainlink ETF, following Bitwise, as the LINK price surges amid positive market sentiment.

• Grayscale’s filing with the SEC aims to convert its Chainlink Trust into an ETF, seeking approval for the NYSE Arca listing.
• The ETF will offer institutional investors access to Chainlink, with Coinbase and BNY Mellon serving key operational roles.
• Grayscale’s registration depends on the SEC’s approval of the proposed Generic Listing Standards for crypto ETFs.

Grayscale submitted a registration statement to the SEC for the Grayscale Chainlink Trust (LINK) to convert it into an ETF. This makes Grayscale the second asset manager to file a proposal for a Chainlink ETF after Bitwise. The firm seeks to list the product on NYSE Arca, contingent on SEC rulemaking.

The proposed ETF targets institutional investors seeking regulated exposure to LINK, the native token of the Chainlink network. Operational roles listed in the filing include Coinbase as prime broker and custodian and The Bank of New York Mellon as transfer agent and administrator. Grayscale positions the ETF as a formal investment vehicle for LINK.

How will the SEC’s Generic Listing Standards affect the ETF timeline?

The registration is explicitly dependent on the SEC adopting the proposed Generic Listing Standards for crypto ETFs. If the SEC approves those standards, ETFs like Grayscale’s can list on NYSE Arca without a separate 19b-4 filing. Grayscale stated it will not seek effectiveness of the registration until the SEC adopts the rules or determines approval is unnecessary.

Market observers view the standards as pivotal for broadening crypto ETF listings. Grayscale’s prospectus anticipates a favorable outcome; however, firm timing remains subject to the SEC’s rulemaking schedule and review process.

Why did LINK price move after the filing?

LINK rose by about 2% in one day after the filing and traded around $23, gaining over 3% in 24 hours. The uptick reflects investor optimism that a regulated ETF would increase institutional demand and liquidity for Chainlink’s token.

Comparison: Proposed ETF structure at a glance

Frequently Asked Questions

Will the Grayscale Chainlink ETF be available to retail investors?

Yes. If approved and listed on NYSE Arca, the ETF would be tradeable by retail and institutional investors through brokerage accounts, providing regulated exposure to LINK without direct token custody by investors.

Can the ETF engage in staking of LINK?

Grayscale mentioned potential staking activities but noted the Trust has not met conditions required to stake. Any staking would require compliance with regulatory guidance and internal governance processes.

Key Takeaways

• Regulatory dependence: The filing is conditional on the SEC adopting Generic Listing Standards.
• Institutional access: Coinbase custody and BNY Mellon administration position the ETF for institutional use.
• Price impact: LINK saw a short-term price uptick as the filing increased investor optimism.

Conclusion

The Grayscale Chainlink ETF filing represents a major step toward institutionalizing access to LINK, subject to SEC rule changes and review. Investors should monitor SEC developments and official filings for timing and approval decisions. COINOTAG will update coverage as new regulatory or market information becomes available.