Bitwise Asset Management has filed paperwork with the US Securities and Exchange Commission (SEC) seeking approval for a spot Chainlink exchange-traded fund (ETF).
The proposed product, known as the Bitwise Chainlink ETF, would allow investors to gain regulated exposure to LINK, the native token of the Chainlink network, without holding the asset directly.
Structure of the Proposed Fund
According to the preliminary S-1 filing, the ETF’s primary objective is for its shares to track the price of LINK in the spot market. Coinbase Custody Trust Company is listed as the custodian, while Coinbase, Inc. would act as the prime execution agent.
Although the sponsor intends to list the shares on a US national securities exchange, the filing does not yet disclose the specific venue.
The submission represents the latest effort by asset managers to broaden crypto-based products available to institutional and retail investors. While most spot ETFs approved to date have focused on Bitcoin and Ethereum, Bitwise’s filing signals growing demand for regulated investment vehicles tied to alternative digital assets.
The filing outlines a structure similar to other spot crypto ETFs recently approved by regulators. Creation and redemption mechanisms would allow shares to be issued and redeemed either in-kind or through cash transactions, managed through a “Trust-Directed Trade” process facilitated by Coinbase as the prime execution agent.
One notable aspect of the filing is its decision not to incorporate staking. Despite recent SEC clarification that staking does not necessarily violate federal securities laws, Bitwise’s Chainlink ETF is designed to provide direct exposure only to LINK’s spot market price.
The filing contains no mention of validator participation or staking rewards, suggesting that the product is aimed at offering straightforward market exposure rather than yield-enhanced features.
This decision contrasts with growing institutional interest in staking as a revenue model within Ethereum-based funds, but aligns with the cautious approach regulators have required for first-generation crypto ETFs.
Chainlink’s Role and Market Context
Chainlink serves as a decentralized oracle network that connects blockchain systems to external data sources, such as asset prices, economic indicators, and real-world events.
By enabling smart contracts and decentralized finance (DeFi) protocols to access reliable off-chain information, it plays a foundational role in the broader digital asset ecosystem. The LINK token incentivizes node operators and is used within the network’s proof-of-stake model for governance and security.
Bitwise’s ETF application arrives amid a wave of filings for single-token products beyond Bitcoin and Ethereum. Earlier this week, Grayscale submitted paperwork to convert its Avalanche Trust into a spot AVAX ETF, while other issuers have signaled interest in creating regulated funds tied to Solana and other altcoins.
These moves reflect increasing investor appetite for diversified crypto exposure through traditional financial products. The SEC’s review of Bitwise’s filing will determine whether Chainlink joins the growing list of crypto assets available through spot ETFs.
Featured image created with DALL-E, Chart from TradingView
