Bitwise Wins Approval to Launch Spot Chainlink ETF

Crypto asset manager Bitwise has received approval to list its spot Chainlink Exchange Traded Funds (ETF) on NYSE Arca. These move would allow investors to gain direct exposure to decentralized oracle network Chainlink’s token, LINK, through a regulated platform. 

The approval comes as market interest grows, with LINK seeing strong price gains and higher trading activity.

NYSE Arca Approval Clears Path for CLNK Listing

The asset manager was the first to file for a Chainlink ETF in August. It later submitted a Form 8-A to the U.S. Securities and Exchange Commission (SEC) on January 5 for its spot Chainlink ETF.

Shortly after, NYSE Arca approved the product for listing under the ticker CLNK. The asset manager controls over $15 billion in crypto assets, adding weight and credibility to the new product’s market entry. 

Furthermore, Coinbase Custody will safeguard the ETF’s digital assets, while BNY Mellon will act as the cash custodian. Bitwise also listed LINK staking as a secondary investment goal. 

Although staking is not yet active, the trust has named Attestant Ltd as its preferred staking agent if staking is enabled in the future. Bitwise expects the ETF to launch this week, adding another spot crypto ETF for U.S. investors. 

Bitwise Extends Fee Waiver as Competition Grows in Chainlink ETF Market

Bitwise said it has extended its full management fee waiver. The waiver now covers up to $500 million in assets under management and has been extended from one month to three months. 

Additionally, the crypto funds carries a long-term management fee of 0.34%, making it more attractive to early investors. 

To seed the fund, Bitwise Investment Manager LLC will purchase the initial share baskets worth $2.5 million, equal to 100,000 shares priced at $25 each.

The launch comes as competition heats up in the Chainlink ETF space. On Monday, the Grayscale Chainlink ETF (GLNK) recorded $2.24 million in inflows. 

This pushed total inflows to $62.22 million and assets under management to over $87 million. Grayscale previously waived its 0.35% management fee for three months or until assets reached $1 billion.

LINK Price Jumps as Bitwise ETF News Lifts Market Sentiment

The market reacted positively to the Bitwise ETF news. LINK rose over 2% in the last 24 hours, pushing its weekly gain to more than 11%.

The token is trading at $13.86, after moving between a low of $13.41 and a high of $14.11.Trading volume also climbed nearly 45% in the past day, showing growing investor interest.

Derivatives data also shows rising confidence, with total LINK futures open interest increasing by nearly 2%. According to CoinGlass, it now stands at $665.46 million. With approval in place and market mood improving, the Bitwise Chainlink ETF could help boost demand for LINK.