Bitwise Pushes Boundaries with First Chainlink Spot ETF Filing

Bitwise Asset Management has taken a bold step in the evolving digital asset market by filing for a Chainlink spot exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission. The application marks the first time an oracle network token has been considered for an ETF in the United States, expanding the conversation beyond the dominant narratives of Bitcoin and Ethereum.

The proposed fund would hold LINK tokens directly, with custody services provided by Coinbase Custody, one of the most established crypto custodians in the industry. Its net asset value would be calculated using the CME CF Chainlink-Dollar Reference Rate, a benchmark compiled by CF Benchmarks from aggregated data across major trading venues. Shares of the ETF are set to be issued in blocks of 10,000 and redeemable in either LINK or U.S. dollars, providing institutional investors with a regulated vehicle to gain exposure to Chainlink.

Bitwise’s move reflects a broader trend among asset managers seeking to capitalize on surging institutional appetite for crypto ETFs. Since the SEC’s approval of spot Bitcoin ETFs in January 2024 and Ethereum ETFs later that year, issuers have raced to file for products tied to other major cryptocurrencies. Proposals currently under review include funds tracking XRP, Solana, Dogecoin, and Aptos. A greenlight for Chainlink would mark a significant milestone, not only for the asset itself but for altcoins as a category.

The timing of the application coincides with rising attention around Chainlink. Known for its decentralized oracle network, Chainlink plays a crucial role in bridging smart contracts with real-world data. Its utility has expanded through strategic partnerships, including a recent collaboration with Japan’s SBI Group aimed at bringing tokenized assets, stablecoin verification, and cross-border payments to the Japanese market and beyond. Other advancements, such as the launch of Data Streams and expanded LINK reserves, have further cemented its position as an indispensable piece of blockchain infrastructure.

Market sentiment has responded accordingly. Chainlink’s price has surged nearly 90% over the past year, outperforming most large-cap tokens. Despite a recent pullback to $23.40, reflecting broader market weakness after Bitcoin’s dip below $111,000, LINK remains up 25% in the last month alone. Analysts suggest that the prospect of a regulated ETF could fuel another wave of institutional and retail inflows, potentially reinforcing LINK’s position among the top tier of crypto assets by market capitalization.

The SEC’s decision will be closely watched. If approved, the Bitwise Chainlink ETF could set a precedent for a new generation of altcoin-based investment products, reshaping the way traditional investors access blockchain ecosystems. For Bitwise, which has positioned itself at the forefront of digital asset innovation, the filing represents both a strategic gamble and a bet on Chainlink’s growing adoption across global financial markets.