The approval of spot Bitcoin and Ethereum ETFs on the US market offers the prospect of similar exchange-traded funds linked to other cryptocurrencies. Chainlink’s LINK cryptocurrency has just been added to the regulatory waiting list.
Bitwise files application for Chainlink ETF
The historic approval of Bitcoin and Ethereum spot ETFs by the US SEC has paved the way for the cryptocurrency sector to effectively enter the stock market sphere. This has led to unprecedented success in the field, with launches that have quickly eclipsed all competition over the last 30 years.
Following this massive adoption, the issuers of these funds quickly decided to turn to other popular cryptocurrencies. This led to a pileup of applications on the desk of the Securities and Exchange Commission, which is still stalling on their actual approval.
This situation has not prevented Bitwise from continuing to propose new altcoins to add to this waiting list, with a recent filing of an S-1 form concerning the LINK cryptocurrency of the Chainlink oracle project.
The Trust’s investment objective is to seek to provide exposure to the value of the Chainlink held, net of its operating expenses and other liabilities. To achieve this objective, the Trust will hold LINK and will establish its net asset value (NAV) by reference to the CME CF Chainlink–Dollar Reference Rate.
Bitwise
The first ETF linked to LINK
Among the long list of crypto ETFs awaiting approval, this fund is the first of its kind to offer exposure to LINK. However, this announcement has clearly had less of an impact on its price than Chainlink’s recent announcement of a strategic reserve on August 7.
Over the last 30 days, the price of LINK has risen significantly by 25%, with a price of around $24, which is still more than 54% below its last historic high of over $52 in May 2021.
The US SEC is faced with a huge pile of approval requests on its desk for all kinds of crypto ETFs, the main purpose of which is for the issuers of these funds to assess the limits of its policy, which is presented as favorable to cryptocurrencies.
However, US stock exchanges are growing impatient, to the point of requesting an automated approval procedure that would allow them to bypass the regulatory body’s green light in cases where applications meet certain specific requirements. A case to watch…
