In a move that could redefine crypto investment strategies, Grayscale Investments has taken a significant step towards launching what might become the first U.S. Chainlink ETF. The firm has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to transform its existing Chainlink Trust into a spot exchange-traded fund (ETF). Should it receive the green light, this ETF would list on NYSE Arca under the ticker GLNK.
A New Era for Chainlink?
Chainlink’s native token, LINK, has seen a 3% uptick over the last 24 hours, buoyed by a broader rally in altcoins. This positive momentum includes gains for other cryptocurrencies, such as XRP’s 2.6%, SOL’s 5%, and DOGE’s impressive 7.4% surge. Investors and market watchers alike are keeping a keen eye on Grayscale’s application, which is one of the two required documents needed to officially kickstart the ETF approval process.
Grayscale’s filing isn’t just about converting a trust into an ETF; it also introduces intriguing possibilities like staking. The proposal hints at using third-party staking providers while ensuring the LINK tokens remain secure in custodian wallets. Staking rewards could then be distributed to shareholders, retained by the fund, or sold to cover expenses, depending on future regulatory guidance.
Why Grayscale’s Move Matters
The transformation from the Grayscale Chainlink Trust, which has been operational since February 2026 and currently manages nearly $29 million in assets, into an ETF could open new doors for traditional investors. The trust’s current custodian, Coinbase Custody Trust Company, would continue its role, ensuring the safe handling of assets.
Grayscale’s approach is not isolated to Chainlink. The firm has broader aspirations to convert multiple single-asset crypto trusts into ETFs. Proposals are already in the pipeline for funds linked to the price movements of solana (SOL), dogecoin (DOGE), and XRP. However, these aspirations hinge on the SEC’s response under the leadership of Chair Paul Atkins, who has yet to approve or deny these applications.
Potential Benefits and Market Reactions
If approved, the GLNK ETF would offer regulated access to Chainlink’s price performance to traditional investors. Chainlink is renowned for powering decentralized data feeds essential for blockchain applications and smart contracts. Additionally, the inclusion of a staking feature could introduce an income component that remains uncommon in U.S. crypto ETFs.
For market participants, the news has been met with optimism. LINK’s recent gains suggest that traders are already factoring in the potential benefits of the ETF’s approval. Such a product would not only validate Chainlink’s role in the crypto ecosystem but also potentially enhance its liquidity and market presence.
Navigating Regulatory Waters
The ETF’s structure, mirroring the cash-based creations and redemptions seen in recently approved spot bitcoin (BTC) and ethereum (ETH) ETFs, shows Grayscale’s commitment to aligning with existing regulatory frameworks. However, the filing also leaves room for adaptability, allowing for the possibility of in-kind redemptions if future regulations permit.
The SEC’s stance on crypto ETFs has been cautious, and Grayscale’s proposal will likely face rigorous scrutiny. Yet, the company’s proactive stance and readiness to adapt its offerings underline its commitment to staying at the forefront of crypto innovation.
The Road Ahead
While the path to regulatory approval is fraught with challenges, the potential rewards are significant. Should the GLNK ETF come to fruition, it could serve as a catalyst for further institutional adoption of cryptocurrencies. It would also reinforce Grayscale’s position as a trailblazer in the crypto investment landscape.
For now, all eyes are on the SEC’s next move. As Grayscale awaits a decision, the crypto community is abuzz with speculation and excitement over the possibilities that such an ETF could unlock. Whether this move will set a precedent for other crypto assets remains to be seen, but one thing is clear: the landscape of digital asset investing is rapidly evolving, and Grayscale is determined to lead the charge.
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.
