Bitwise has officially filed paperwork with the U.S. SEC seeking approval for a Chainlink ETF, escalating competition with its XRP fund application.
ETF Filing Details and Market Structure
The S-1 filing with the SEC indicates that the proposed Bitwise Chainlink ETF would directly hold LINK tokens, providing investors exposure to Chainlink without purchasing tokens on cryptocurrency exchanges.
The fund would operate through both in-kind and cash creation processes. Investors can create shares using LINK tokens and redeem shares to receive LINK or complete transactions entirely in cash.
> Share issuance and redemption would follow a Trust-Directed-Trade process mirroring other spot cryptocurrency ETFs.
Market Response and Price Action
Chainlink's price reflected positive investor sentiment following the ETF filing announcement, trading above $23 on Tuesday with nearly 5% daily gains. Traders are monitoring whether LINK can maintain ETF-driven momentum and potentially reach $30.
> Market analysts view ETF approval as a significant catalyst for cryptocurrency adoption among institutional investors.
XRP Competition and Approval Timeline
Bitwise is simultaneously pursuing an XRP ETF alongside its Chainlink application. The company has filed amended S-1 forms, expecting key approval catalysts in October. XRP remains stable around $3.22, as traders watch for potential breakouts approaching the October review timeline.
Oracle networks like Chainlink serve as data bridges connecting blockchain platforms with external information sources, enabling smart contracts to access real-world data.
Both Chainlink and XRP are significant cryptocurrency projects competing for regulated ETF status through Bitwise applications. SEC decisions on these products could substantially influence broader cryptocurrency ETF adoption and institutional investment patterns in digital assets.
