Bitwise Seeks Approval For First US Chainlink ETF
By: Isha Das
Bitwise Asset Management has recently filed with the United States Securities and Exchange Commission (SEC) to launch a pioneering spot Chainlink exchange-traded fund (ETF). This proposed Bitwise Chainlink ETF aims to offer investors direct exposure to the digital asset. If approved, it would mark the first ETF in the U.S. facilitated to provide such exposure, potentially igniting an institutional obsession with Chainlink, reminiscent of previous Bitcoin and Ethereum ETF introductions.
Chainlink is recognized as a leading decentralized oracle network widely deployed in providing off-chain data to smart contracts across blockchain networks, including Ethereum. The LINK token serves as a fundamental asset within Chainlink’s ecosystem. It is used to remunerate node operators for data retrieval and computational processes. Chainlink's relevance extends beyond the cryptocurrency space as it has fostered collaborations with major financial institutions like Swift, Visa, and JPMorgan, highlighting the growing intersection of blockchain technology with traditional finance.
The Bitwise Chainlink ETF intends to replicate the value of Chainlink’s LINK token, reflecting its performance held in custody minus any fees. According to the filing, the ETF will be passively managed, eliminating strategies that attempt to profit from price fluctuations or hedge against potential losses. Coinbase Custody Trust Company is designated as the custodian for the underlying tokens, while the fund's pricing will hinge on the CME CF Chainlink–Dollar Reference Rate.
Furthermore, this novel ETF initiative by Bitwise attempts to seamlessly bridge decentralized infrastructure with traditional regulated markets. Approval of this filing could significantly enhance investor access to crypto assets that are crucial to decentralized finance, offering a robust alternative beyond prevailing Bitcoin and Ethereum ETFs. This move underscores a persistent institutional interest in expanding to digital assets, spotlighting Chainlink's critical role.
