"Grayscale Could Bring First Regulated LINK Yield Play to U.S. Markets"

Grayscale Investments has filed with the U.S. Securities and Exchange Commission for what could be the first-ever U.S. spot Chainlink (LINK) exchange-traded fund. The proposed fund aims to convert the existing Grayscale Chainlink Trust into a spot ETF, offering investors direct exposure to the price of LINK, the token used on Chainlink’s decentralized oracle network. If approved, the fund would be listed on NYSE Arca under the ticker symbol GLNK and would be managed by Coinbase Custody Trust Company as custodian [1].

The Grayscale Chainlink Trust ETF is designed to mirror the structure of recently approved spot Bitcoin and Ethereum ETFs, including the option to stake a portion of its LINK holdings, subject to regulatory and tax conditions. Staking, if permitted, would generate potential yield for investors by using third-party providers while ensuring the tokens remain in custodial wallets. Rewards could then be retained by the fund, distributed to shareholders, or sold to cover expenses [1]. The fund also allows for both cash-based and in-kind redemptions, similar to the mechanisms used by existing crypto ETFs [1].

Chainlink, a decentralized oracle platform that connects blockchain networks with real-world data, has recently launched a strategic LINK reserve to support the long-term growth of the network. The platform enables smart contracts to securely access external information such as asset prices and real-world events. The proposed ETF would offer traditional investors regulated access to the price performance of LINK, potentially expanding the product’s appeal as a financial tool [1].

Grayscale’s filing for the Chainlink ETF is part of a broader strategy to convert multiple crypto trusts into ETFs, with additional applications for Solana, Dogecoin, and XRP ETFs already in the works. These filings come at a pivotal time for the U.S. crypto market, as the SEC under Chair Paul Atkins appears poised to consider such products more favorably than in previous years. The regulatory environment has shifted under the Trump administration, with expectations of a more accommodating stance toward crypto-related financial instruments [2].

The proposed ETF could also represent a broader shift in the U.S. crypto investment landscape. Unlike many existing crypto products, which are either futures-based or lack yield generation, the Grayscale Chainlink Trust ETF could provide a regulated and income-generating option for investors. If approved, it would offer a new avenue for institutional and retail investors to access Chainlink’s decentralized oracle services and their underlying token’s price movements [2]. The potential staking feature is a key differentiator, as most U.S. crypto ETFs do not currently include yield-generating components.

Chainlink’s LINK token has shown recent strength, with a 3% increase in the past 24 hours, aligning with a broader rally in altcoins. The market’s reaction to Grayscale’s filing has been positive, with LINK trading at $23.14 as of Monday. The token’s performance suggests investor optimism about the potential for new structured products to enter the market [2].

Grayscale’s filing for the Chainlink ETF is one of several similar applications submitted by firms such as 21Shares, Bitwise, Canary Capital, Franklin Templeton, REX Shares, and VanEck. These applications include proposed ETFs for a range of cryptocurrencies, reflecting a growing interest from the traditional finance sector in crypto assets. While the SEC has yet to approve or reject any of these applications, the regulatory environment has shifted in a direction that could support greater financial innovation in the space [2].

Source: [1] Grayscale seeks SEC approval to launch spot Chainlink ETF in the US (https://www.theblock.co/post/369788/grayscale-seeks-sec-approval-to-launch-spot-chainlink-etf-in-the-us) [2] Chainlink (LINK) News: Higher on Grayscale ETF Filing (https://www.coindesk.com/markets/2025/09/08/chainlink-jumps-as-grayscale-files-for-first-ever-u-s-chainlink-etf) [3] Grayscale Files to Create ETF for LINK Digital Assets (https://www.pymnts.com/blockchain/2025/grayscale-files-to-create-etf-for-link-digital-assets/)