Bitwise Asset Management has filed to launch an exchange-traded fund (ETF) that will track the Chainlink token, marking a significant development in the cryptocurrency landscape.
ETF Filing
On Tuesday, Bitwise filed with the U.S. Securities and Exchange Commission (SEC) to launch an ETF that will trade under the name Bitwise Chainlink ETF, with Coinbase Custody serving as the custodian. The ETF plans to hold Chainlink (LINK) tokens and allow investors to buy or sell shares using LINK tokens. While Bitwise submitted a Form S-1 for the fund, they must also submit additional paperwork to initiate the SEC's approval process.
Market Reaction
Following the filing, the price of LINK rose by 4.2%, now standing at $24.18. Over the last 30 days, LINK has gained over 26%, though it remains significantly below its peak of nearly $53 in May 2021.
Growing Interest in Altcoin ETFs
With the increasing interest in cryptocurrencies and a more favorable regulatory environment, numerous ETF filings have been submitted to the SEC. Bitwise has seen success with its ETFs tracking Bitcoin and Ether, with respective assets under management of $2.26 billion and $460 million. Meanwhile, other firms like VanEck and Grayscale are also filing for various crypto-related ETFs.
These initiatives highlight the growing interest in cryptocurrency funds and open up new opportunities for investors as the regulatory landscape for digital assets evolves.
