Bitwise Asset Management has filed for an exchange-traded fund (ETF) focused on the Chainlink token. This initiative reflects the growing interest in crypto assets beyond mainstream currencies.
Goals of the Chainlink ETF
Bitwise submitted a detailed plan to the SEC aimed at accurately mirroring the market price of LINK tokens. Coinbase Custody Trust Company will secure assets, while Coinbase will provide brokerage services. Although the specific exchange for listing is not mentioned, the ETF promises efficient market operations.
ETF Strategy and Absence of Staking
A distinct feature of the proposed ETF is the notable absence of staking LINK tokens. Despite the SEC's recent affirmation on the legality of staking, Bitwise opts to focus solely on the spot price model, avoiding staking rewards and offering investors pure market exposure to LINK’s intrinsic value.
Impact on Crypto Investment Market
Bitwise’s initiative marks a significant development in the realm of crypto ETFs, unveiling pathways beyond Bitcoin and Ethereum through single-asset innovations. The alliance with established firms like Coinbase signals robust operational frameworks. According to CryptoAppsy data, LINK was trading at $23.24 at the time of reporting, reflecting a 4.93% decline over 24 hours, indicating market volatility.
Bitwise’s proposal for a Chainlink-centric ETF represents a pivotal shift toward diversified cryptocurrency investments. This step could lead to broader crypto investment opportunities on Wall Street.
