Bitwise Asset Management has submitted paperwork to U.S. regulators to launch a fund tied directly to Chainlink’s LINK token, representing one of the first ETF attempts focused on blockchain infrastructure.
Bitwise’s New ETF Structure
Bitwise has filed for an ETF designed to mirror the market price of the LINK token. Custody will be handled by Coinbase Custody Trust, while Coinbase, Inc. will act as the primary trading agent. Shares of the product are expected to debut on a national exchange, though the listing venue has not been identified.
Simplicity of the Offer
Unlike other token-based strategies, the proposed ETF avoids staking or validator rewards altogether. Despite recent SEC guidance clarifying that staking is not a securities law violation, the registration statement sticks to the simplest design: direct exposure to LINK’s spot value.
Importance of Chainlink in DeFi
Chainlink has become indispensable in decentralized finance. Its oracles act as the connective tissue between smart contracts and external information, powering services from lending protocols to derivatives platforms. LINK tokens secure the network through proof-of-stake and incentivize node operators that provide feeds.
Bitwise's initiative to create an ETF tied to Chainlink highlights the potential of tokens that possess functionality within the field of decentralized finance and specifically within the Web3 ecosystem.
