Grayscale Investments, the world’s largest crypto asset manager, has officially filed with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Chainlink Trust into a spot Chainlink ETF. If approved, this would be the first-ever U.S. Chainlink ETF, offering regulated exposure to LINK, the native token of the Chainlink network.
What the GLNK ETF Proposal Includes
The proposed Grayscale Chainlink ETF (ticker: GLNK) would list on NYSE Arca and mirror the structure of already-approved spot Bitcoin and Ethereum ETFs. Key features of the filing include:
- Conversion from Trust: The ETF would be built on the existing Grayscale Chainlink Trust, which currently manages about $29 million in assets.
- Custody: Coinbase Custody Trust Company would act as the custodian for LINK tokens.
- Share Creation & Redemption: Initially designed for cash transactions, with the option for in-kind redemptions if regulations allow.
- Staking Component: The filing uniquely includes a provision for LINK staking via third-party providers. Staking rewards could either be:
- Retained in the fund,
- Distributed to shareholders, or
- Sold to cover expenses, depending on SEC guidance.
This makes the GLNK ETF one of the first proposed U.S. crypto ETFs with a staking yield component, potentially providing investors with passive income in addition to price exposure.
Chainlink is the leading decentralized oracle network, providing off-chain data to blockchain smart contracts. It underpins much of the DeFi ecosystem and is widely considered critical infrastructure for Web3.
By bringing LINK into an ETF format, Grayscale aims to make it easier for traditional investors to access Chainlink exposure through regulated markets — without needing to directly hold or stake the tokens themselves.
Grayscale’s ETF Expansion Strategy
The GLNK filing is part of Grayscale’s broader push to convert single-asset trusts into ETFs:
- Approved: Spot Bitcoin (GBTC → BTC ETF) and Ethereum ETFs.
- Pending: Proposals tied to Solana (SOL), Dogecoin (DOGE), and XRP.
This multi-asset ETF roadmap shows Grayscale’s intent to lead the altcoin ETF race as regulators begin to accept crypto beyond Bitcoin and Ethereum.
Market Impact
The filing comes as altcoins rally, with LINK up 3% in the past 24 hours, alongside gains in SOL (+5%), XRP (+2.6%), and DOGE (+7.4%). Approval of a Chainlink ETF could significantly boost institutional adoption and bring new liquidity into the LINK market.
If approved, the Grayscale Chainlink ETF (GLNK) would:
- Be the first U.S. ETF tied to Chainlink (LINK).
- Potentially include a staking rewards feature, a first for U.S. crypto ETFs.
- Provide traditional investors regulated access to one of the most important blockchain networks powering decentralized finance.
With the SEC yet to rule, the GLNK ETF represents a milestone moment for altcoin ETFs, potentially signaling a new phase of institutional crypto adoption beyond Bitcoin and Ethereum.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.