Bitwise Asset Management has filed an application for launching an ETF aimed at the LINK token, part of the Chainlink network. The application is currently under review by the SEC.
ETF Objectives and Structure
The fund is designed to track the price dynamics of the LINK token. Coinbase Custody Trust Company will serve as the custodian, while Coinbase, Inc. will act as the primary brokerage. Shares are planned to be listed on a national exchange in the US, although the specific platform has not yet been announced.
Characteristics of LINK Token
The LINK token is used to incentivize validators and participate in the governance of the Chainlink network, which stands out as one of the largest oracle protocols connecting blockchains with real-world data. According to the filing, the fund will provide direct exposure to the spot price of LINK, excluding any staking options.
Trends in the Cryptocurrency Market
Bitwise's application reflects a growing trend of creating ETFs based on individual cryptocurrencies beyond Bitcoin and Ethereum. Recently, Grayscale also applied to convert its Avalanche Trust into a spot AVAX ETF.
Bitwise's filing for a Chainlink ETF highlights the interest in expanding investment opportunities in individual crypto assets, potentially opening up new horizons for investors.
