Bitwise has submitted a registration statement for a Chainlink (LINK) ETF to the U.S. Securities and Exchange Commission (SEC). This move reflects a growing interest in investing in cryptocurrency through regulated financial instruments.
Objectives and Structure of Bitwise Chainlink ETF
The registration statement for the Bitwise Chainlink ETF is aimed at tracking the current market price of LINK, which is used within the Chainlink ecosystem. The fund provides investors with a convenient way to invest in LINK without needing to own it directly. The filing does not clarify the role of staking the token or earning rewards from validators.
Use of Coinbase in ETF
Coinbase Custody Trust Company has been selected to provide brokerage and custody services for the ETF. Additionally, Coinbase Inc. will assist in executing LINK transactions for the trust. This collaboration indicates Bitwise's trust in Coinbase's reliability and reputation for asset management.
Competition in Crypto ETFs
The Bitwise filing comes amid increasing competition in the ETF market. Other firms, like Grayscale and VanEck, are also submitting similar applications, indicating a growing interest in cryptocurrency funds alongside the broader adoption of digital assets in the market.
Bitwise's plan to launch the Chainlink ETF opens new opportunities for investors seeking access to the rapidly evolving cryptocurrency landscape. With similar applications from other firms, competition in this sector continues to intensify.
