Bitwise Asset Management has filed a registration application for an ETF for Chainlink, which could open new opportunities for investors and influence the cryptocurrency market.
About the Chainlink ETF Approval
Bitwise has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch the 'Bitwise Chainlink ETF.' If approved, this product will hold LINK tokens directly and be managed by Coinbase Custody Trust Company. The ETF will not utilize leverage or derivatives, but will track the LINK price based on the CME CF Chainlink-Dollar Reference Rate. The net asset value will be updated daily, while intraday prices will refresh every 15 seconds.
Role of Chainlink as a Leading Protocol
Launched in 2019 as a decentralized oracle network, Chainlink connects blockchains with real-world data, allowing smart contracts to interact with external information. This technology is applied for creating price feeds, random number generation for gaming applications, and ensuring cross-chain interoperability. To date, Chainlink supports thousands of projects and is regarded as a foundation for decentralized finance.
Market Reactions and LINK Price Outlook
The ETF filing has sparked discussions about how LINK’s price might respond. Market analyst Ali Martinez suggested that LINK could see one more dip before a price increase. His forecast indicated that LINK may consolidate within a long-term pattern, waiting for a potential breakout. At the time of writing, LINK was trading around $24.29, reflecting a 1.08% decline in 24 hours.
Bitwise's filing for a Chainlink ETF could push the token toward greater recognition in financial markets and attract new investors, though short-term price fluctuations remain a concern.
