Bitwise Asset Management has filed an application with the U.S. Securities and Exchange Commission to launch an ETF tracking the price of Chainlink (LINK). This move could expand the crypto ETF market in the U.S.
Contents of the Filing
The ETF application indicates that the fund will hold LINK directly, with Coinbase Custody Trust Company serving as custodian and Coinbase Prime acting as execution agent. The fund will track the CME CF Chainlink-Dollar Reference Rate, providing both cash and in-kind options for creation and redemption for investors.
Why Chainlink?
Chainlink stands out among other altcoins. Since its launch in 2019, the decentralized oracle network has become essential for DeFi, tokenization, gaming, NFTs, and cross-chain projects. Chainlink's technology provides reliable off-chain data to smart contracts and integrates with major institutions, including banks.
SEC Review and Global Demand
While the structure resembles already approved Bitcoin and Ethereum ETFs, the SEC's stance on altcoin ETFs remains uncertain. Considering the growing demand for crypto ETFs globally, the launch of a Chainlink ETF in the U.S. could attract significant institutional investment into the token.
The filing for the Bitwise ETF signifies an important step toward expanding the crypto ETF market in the U.S., opening new opportunities for investors in altcoins.
