Simply put
- Bitwise has filed with the SEC for a chain link ETF that will hold Link tokens directly, using Coinbase Custody for asset management.
- ETFs allow for the physical creation and redemption of tokens, enabling investors to trade linked tokens directly for stocks.
- Following the news, Link was priced around $24.27, reflecting a 1.1% decline amid a general downturn in the crypto market.
Bitwise has submitted a proposal for a chain link ETF that will directly hold the native tokens of the Oracle Network, as indicated in a recent SEC filing.
While the filing does not outline potential future performance, it specifies that the supporting stocks for the tokens will be held at Coinbase Custody Trust Company, which is also the custodian for several major U.S. crypto ETFs like those from BlackRock.
These ETFs facilitate physical transactions, allowing investors to buy stocks and receive tokens upon selling them. It’s worth noting that the SEC has recently started permitting crypto ETF providers to engage in such transactions.
In recent months, Bitwise has filed applications for ETFs tracking Solana, XRP, Dogecoin, and Aptos individually. Notably, Bitcoin and Ethereum ETFs have attracted net inflows of $2.2 billion and $461 million, respectively.
The value of Link briefly reached $24.70 on Tuesday morning but then dropped. At the moment, it’s trading about 1.1% lower from the previous day at $24.27, according to Price Aggregator Coingecko.
Trading volume also fell, dropping by 14.3% to $3.8 billion in the past 24 hours. Open interest for futures or options contracts has similarly decreased by 5% to $1.7 billion.
The broader crypto market is facing challenges, with Bitcoin dipping below $110,000 amidst Federal Reserve concerns. At this point, it’s fluctuating around that threshold.
According to earlier reports from Decryption, venture capital firm David Attermann highlighted the bullish potential of Link, mentioning that “the presence of Chainlink in banking and key cryptographic protocols leads to high switching costs and substantial revenue opportunities.”
