Cryptocurrency asset manager Bitwise officially filed paperwork Tuesday with the U.S. Securities and Exchange Commission seeking approval for a Chainlink ETF, escalating competition with its pending XRP fund application as both tokens position for regulated investment product status.
What to Know:
- Bitwise submitted S-1 filing with SEC Tuesday for Chainlink ETF that would hold LINK tokens directly
- Chainlink price jumped nearly 5% to above $23 following ETF application news Tuesday
- Company also pursuing XRP ETF with amended filings and potential October approval timeline
ETF Filing Details And Market Structure
The S-1 filing indicates the proposed Bitwise Chainlink ETF would directly hold LINK tokens, the native cryptocurrency of the oracle network platform. This structure allows investors to gain exposure to Chainlink without purchasing tokens directly through cryptocurrency exchanges.
The fund would operate through both in-kind and cash creation processes. Investors can create shares using LINK tokens and redeem shares to receive LINK, or complete transactions entirely in cash.
Share issuance and redemption would follow a Trust-Directed-Trade process mirroring other spot cryptocurrency ETFs.
SEC regulations have recently permitted in-kind creation and redemption mechanisms for crypto-based ETFs. The Chainlink ETF application lacks a specified ticker symbol and exact listing venue. However, Bitwise plans to list the fund on a U.S. national securities exchange following SEC approval.
Coinbase Custody Trust Company would serve as custodian for LINK tokens and act as prime execution agent according to filing documents.
Market Response And Price Action
Chainlink's market performance reflected positive investor sentiment following the ETF filing announcement. The token traded above $23 Tuesday, representing nearly 5% daily gains. Traders are monitoring whether LINK can maintain ETF-driven momentum and potentially reach $30 if the current uptrend continues.
Market analysts view ETF approval as a significant catalyst for cryptocurrency adoption among institutional investors.
Direct exposure through regulated investment products eliminates technical barriers associated with cryptocurrency wallet management and exchange interactions.
XRP Competition And Approval Timeline
Bitwise simultaneously pursues an XRP ETF alongside the Chainlink application. The company filed amended S-1 forms for its XRP product with key approval catalysts expected in October. These amendments likely address SEC feedback received during the initial review process.
Market experts suggest XRP ETF approval patterns could follow different precedents. If the process mirrors Ethereum ETF approval, trading could begin approximately two months after regulatory clearance. However, following Bitcoin ETF patterns might result in trading launch within one to five days of approval rather than extended waiting periods.
XRP price action remains relatively stable despite pending ETF decisions. The token trades near $3.22 after reaching $3.60 in recent sessions. Traders are watching for potential breakouts as the October review timeline approaches.
Understanding Oracle Networks And Digital Assets
Oracle networks like Chainlink serve as data bridges connecting blockchain platforms with external information sources. These systems enable smart contracts to access real-world data including price feeds, weather information, and other variables necessary for automated contract execution.
LINK tokens facilitate network operations by compensating data providers and securing oracle services.
The token's utility within the expanding decentralized finance ecosystem has attracted institutional attention as traditional finance increasingly explores blockchain applications.
XRP functions as a digital payment token designed for cross-border transactions and financial institution settlements. The cryptocurrency has faced regulatory challenges but maintains significant market capitalization and institutional partnerships in the payments sector.
Closing Thoughts
Both Chainlink and XRP represent major cryptocurrency projects competing for regulated ETF status through Bitwise applications. The SEC's decisions on these products could significantly influence broader cryptocurrency ETF adoption and institutional investment patterns in digital assets.
