Grayscale Files for First U.S. Chainlink ETF With $29 Million in Assets

Grayscale Investments filed Monday with the Securities and Exchange Commission to convert its existing Chainlink Trust into what could become the first U.S. exchange-traded fund tied to the cryptocurrency. The proposed ETF would trade on NYSE Arca under the ticker GLNK if approved by regulators.

What to Know:

Grayscale submitted an S-1 registration statement to convert its $29 million Chainlink Trust into a spot ETF
The proposed fund would include a potential staking feature allowing third-party providers to earn rewards on LINK tokens
LINK gained 3% in 24 hours following the filing, outperforming other major cryptocurrencies during a broader altcoin rally

Regulatory Filing Details

The Monday S-1 registration statement represents one of two required documents to formalize an ETF application with federal regulators. Grayscale's filing comes as the investment management firm pursues a broader strategy to convert multiple single-asset cryptocurrency trusts into publicly traded funds.

The proposed Chainlink ETF would convert from the Grayscale Chainlink Trust, which launched in February 2025 and currently manages nearly $29 million in assets. Coinbase Custody Trust Company would continue serving as custodian for the fund's digital assets. The conversion structure mirrors Grayscale's successful transitions of Bitcoin and Ethereum trusts into approved ETFs earlier this year.

Unlike traditional ETF structures, Grayscale's filing includes provisions for a staking component that could generate additional returns. The fund could engage third-party staking providers while maintaining LINK tokens in custodian wallets, according to the regulatory document. Staking rewards could be retained by the fund, distributed to shareholders, or sold to cover operational expenses, depending on future regulatory guidance from the SEC.

The ETF would process share creations and redemptions in cash, following the operational framework established by recently approved spot Bitcoin and Ethereum ETFs. However, the filing allows flexibility for in-kind redemptions if future regulations permit such transactions.

Market Response and Broader Context

LINK tokens gained 3% over the past 24 hours following news of the filing. The price movement occurred alongside a broader rally in alternative cryptocurrencies, with XRP advancing 2.6%, Solana climbing 5%, and Dogecoin surging 7.4%. The positive market reaction suggests investor optimism about potential regulatory approval.

Grayscale's Chainlink application joins a growing queue of pending cryptocurrency ETF proposals awaiting SEC review.

The firm has submitted similar applications for funds tied to Solana, Dogecoin, and XRP tokens. These filings represent part of the company's systematic approach to expanding regulated cryptocurrency investment products for traditional investors.

The SEC under Chair Paul Atkins has not yet approved or denied any of these pending applications. However, investment firms continue preparing products they anticipate could become among the first regulated funds in their respective asset classes. The regulatory environment for cryptocurrency ETFs has evolved significantly since the approval of spot Bitcoin ETFs in early 2024.

Understanding Chainlink Technology

Chainlink operates as a decentralized oracle network that provides real-world data to blockchain applications and smart contracts. The protocol connects off-chain information with on-chain systems, enabling smart contracts to access external data sources, APIs, and traditional payment systems. LINK tokens serve as the native currency for paying node operators who provide data services within the network.

The technology has gained adoption across decentralized finance applications, insurance protocols, and gaming platforms that require reliable external data feeds. Major blockchain networks including Ethereum, Polygon, and Binance Smart Chain integrate Chainlink oracles for price feeds and other data services.

The protocol's market position as a leading oracle provider has contributed to LINK's status among the top cryptocurrencies by market capitalization.

If approved, the GLNK ETF would provide traditional investors with regulated exposure to Chainlink's price performance without requiring direct cryptocurrency ownership. The potential staking feature could offer an income component not currently available in most U.S. cryptocurrency ETFs, potentially setting a precedent for future crypto fund structures.

Closing Thoughts

Grayscale's Chainlink ETF filing represents another step in the firm's expansion of regulated cryptocurrency investment products. The proposed fund's staking feature and established trust conversion model could influence future cryptocurrency ETF applications if approved by regulators.