Grayscale’s Cryptic Ballet: A Leap for Chainlink ETF 🕺🔗

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Markets

What to know:

  • Grayscale, the crypto maestro, has filed to metamorphose its Chainlink Trust into an exchange-traded fund (ETF). 🎭💰
  • The trust, a modest vessel, currently holds about $29 million in assets. 💰,
  • Grayscale’s filing, a document of intrigue, suggests a potential staking component, employing the services of third-party providers. 🔗,

With a flourish, Grayscale has submitted its petition to the U.S. Securities and Exchange Commission (SEC) to transform its existing Chainlink Trust into a spot exchange-traded fund. The transformation, should it be blessed by the SEC, would allow the ETF to trade on NYSE Arca under the charming ticker GLNK, as per a Monday S-1 registration statement.

This document, the first of two required to formalize an ETF application, has set the stage for what could be a grand spectacle. The LINK token, perhaps sensing the drama, has risen by 3% over the past 24 hours, joining a general rally in altcoins where XRP has added 2.6%, SOL 5%, and DOGE 7.4%. 🚀,

Grayscale’s filing, a veritable treasure trove of possibilities, includes a potential staking feature. If the SEC deigns to allow it, the fund might use third-party staking providers while keeping the LINK tokens in custodian wallets. The staking rewards, like a well-guarded secret, could be retained by the fund, distributed to shareholders, or sold to cover expenses, depending on the whims of future regulatory guidance. 🎲,

The product, a creature born in February 2026, currently manages nearly $29 million in assets. Coinbase Custody Trust Company, a trusted guardian, would serve as custodian. Grayscale assures us that the ETF would process share creations and redemptions in cash, mirroring the structure used by recently approved spot bitcoin and ethereum ETFs. However, the filing leaves room for the possibility of in-kind redemptions, should the regulatory winds shift. 🍃,

This move is part of Grayscale’s grander scheme to transition multiple single-asset crypto trusts into ETFs. Other proposals, each a chapter in this ongoing saga, include funds tied to the price of solana, dogecoin, and XRP. The SEC, under the watchful eye of Chair Paul Atkins, has yet to render judgment on these applications, but that hasn’t deterred the eager firms from preparing products they believe could be among the first of their kind. 🏃‍♂️,

Should the GLNK ETF receive the SEC’s nod, it would offer traditional investors a regulated path to Chainlink’s price performance, a performance that powers decentralized data feeds for blockchain applications and smart contracts. The addition of staking could introduce an income component, a rarity in most U.S. crypto ETFs. 💸,

For now, the market, ever the optimist, seems to be responding with enthusiasm, with LINK posting one of the day’s stronger gains among major cryptocurrencies. 📈,

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2025-09-08 18:45