In an intriguing move for the cryptocurrency market, Bitwise, a leading digital asset manager, has thrown its hat into the ring with the filing of a spot Chainlink ETF. This initiative, designed to offer direct exposure to Chainlink’s native token, LINK, marks the first of its kind in the United States. The announcement, made via an S-1 registration statement filed with the U.S. Securities and Exchange Commission, immediately stirred market waters, nudging LINK’s price upward by 5%—though its 24-hour trajectory remains in the red.
A New Chapter for Altcoin ETFs
Bitwise’s filing comes amidst a broader shift in the regulatory landscape. As the Trump administration’s relaxed stance on crypto regulation continues to provide tailwinds, asset managers are increasingly eyeing altcoin-focused spot ETFs as a viable avenue. “The move to include altcoins like Chainlink in ETF offerings is a testament to the maturing digital asset space,” noted crypto analyst Sarah Thompson, adding that “investors are clamoring for diversified options beyond the traditional Bitcoin and Ether vehicles.” This trend is further evidenced by recent developments such as VanEck’s filing to launch an ETF with Jito’s liquid-staked Solana tokens, highlighting the growing interest in altcoin ETFs.
Coinbase Custody has been named as the proposed custodian for the tokens, showcasing the growing trust in institutional-grade security solutions for digital assets. The market’s reaction to the filing was swift, reflecting both optimism and caution. While LINK saw a 5% bounce, it remains down 1.6% over the past day, according to CoinDesk data, raising questions about whether this uptick can be sustained in the current market climate.
Market Dynamics: The Bearish Undercurrent
Despite the initial excitement, LINK’s market dynamics suggest a more complex picture. Over the past 24 hours, LINK has faced significant downward pressure, plummeting from highs of $24.81 to lows of $22.90. A recovery push was evident during a particularly active trading hour from 10:00 to 11:00 UTC, right around the time the ETF news broke. During this period, the price clawed its way back from $23.02 to $23.54 on a voluminous 3.35 million units traded.
CoinDesk Research’s technical analysis model highlights a crucial insight: while the rebound hints at oversold conditions attracting value-seeking traders, the persistent bearish sentiment looms large. “Reclaiming the $24.00 level is pivotal,” explained market strategist Daniel Yu. “Without it, we might see further dips as the market consolidates.”
Indeed, the technical indicators are flashing caution signals. LINK’s price declined by approximately 4.67% within a 24-hour window, and with a trading range oscillating between $24.81 and $22.90, resistance at $24.30 remains formidable. The volume surge to 6.58 million units far exceeds the 24-hour average, further underscoring the market’s heightened volatility.
Looking Ahead: Will LINK Break Free?
As LINK grapples with these market forces, the larger question persists: can it break free from the bearish shackles? With strong resistance and support levels firmly established, any breach—up or down—could set the tone for the coming weeks. However, as the market digests the implications of this ETF filing, the broader crypto ecosystem remains on tenterhooks. This follows a recent rally where Chainlink’s LINK surged 12% to a new 2025 high amid a token buyback and broader crypto rally, indicating potential for further upward momentum.
The introduction of a Chainlink ETF could potentially ignite a series of similar filings, as asset managers vie to capture investor interest in the ever-expanding altcoin universe. Yet, with regulatory uncertainties still looming and market sentiments fluctuating, the path forward is anything but clear-cut.
For now, LINK’s fate hinges on its ability to navigate these choppy waters. Whether this ETF filing will be the catalyst needed to propel it beyond its current stalemate remains an open question. But one thing’s for sure: the crypto community will be watching closely, ready to seize opportunities—or retreat—based on the unfolding narrative.
Source
This article is based on: Bitwise Files to Launch a Spot Chainlink ETF, LINK Bounces 5%
Further Reading
Deepen your understanding with these related articles:
- Interest In Altcoin Season Crashes 88% In August As Ethereum Price Tanks
- Top 3 Altcoins Accumulated Off Exchanges in Mid-August
- Bitcoin Price to Hit $1.3M by 2035, Says Crypto Asset Manager Bitwise
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
