Grayscale has requested approval from the SEC to change its Grayscale Chainlink Trust into a spot ETF. If approved, investors would obtain LINK through a regulated structure, aligning with preferences for traditional brokerage access over crypto exchanges. The initiative matters for institutional managers, custodians, and retail users.
Context and market impact
The formal filing proposes to list the fund on NYSE Arca under the ticker GLNK, naming Coinbase Custody as custodian and BNY Mellon as administrator and transfer agent. According to the documentation, the trust would hold LINK directly, making ownership easier in a familiar vehicle for traditional investors. Grayscale states that the ETF would simplify access to Chainlink, an oracle infrastructure that feeds DeFi applications with external data and holds real economic value.
The market reacted to the announcement with a near 5% rise in LINK’s price, which the filing notes as an indication of expectations for higher demand for regulated exposure. The S‑1 associated with the Grayscale Chainlink Trust is on the SEC website, starting the regulatory review period. Grayscale has followed a similar plan in prior filings for other assets, signaling operational experience in changing trusts to ETFs, while final approval depends on the SEC’s examination.
Implications for the Chainlink ETF
Institutional custody with Coinbase and administration by BNY Mellon aim to meet regulatory standards for custody and governance. The possible inclusion of staking mechanisms in the fund structure remains an open issue; additional income has been discussed but depends on regulatory clarifications.
Competition has emerged with Bitwise filing its own LINK ETF application. This dual interest could accelerate market conditions and product structures, influencing inflow volumes and relative fees once regulatory decisions occur.
Key details from the filing
- Proposed ticker: GLNK (NYSE Arca according to the S‑1).
- Custodian: Coinbase Custody; Administrator and transfer agent: BNY Mellon.
- Competition: Bitwise has filed a separate application for a LINK ETF.
- Initial market reaction: a 5% rise in LINK’s price following the announcements.
Grayscale’s S‑1 begins the regulatory process to convert the Chainlink Trust into a spot ETF. Final approval will depend on the SEC’s examination of custody, creation/redemption, and the treatment of possible staking activities. If approved, the ETF would provide regulated exposure to LINK for both institutional and retail investors.
