Bitwise Plans to Introduce a Spot Exchange Traded Fund for Chainlink, LINK Price Rises by 5%
Bitwise aims to launch the first-ever U.S. spot ETF focused on Chainlink's native asset with Coinbase Custody as its custodian.
What You Need to Know
- Bitwise filed an S-1 statement to introduce the first U.S. spot-based ETF focused on Chainlink’s native token.
- Following the announcement, LINK’s price saw a 5% increase from overnight lows, although it remains under bearish pressure according to analyses from CoinDesk Research.
Digital Asset Focus
Bitwise is positioning itself to launch the first-ever spot-based ETF in the U.S. that directly holds Chainlink’s token, LINK. According to the S-1 registration statement submitted to the U.S. Securities Exchange Commission, this fund aims to give investors a straightforward way to gain exposure to LINK, designating Coinbase Custody to handle the custody of these assets.
Market Trends
The move aligns with a wider trend where asset managers are trying to roll out altcoin-specific ETFs as the regulatory landscape becomes more favorable. The popularity of bitcoin and ether ETFs has initiated similar requests for Chainlink and other altcoins as crypto investments gain traction. Recently, LINK surged 5% due to this ETF news, yet it has still faced a 1.6% decline over the previous 24-hour period, based on CoinDesk data.
Price Movement Analysis
Despite a positive bounce back, CoinDesk’s research indicates that LINK is facing consistent downward pressure as the market continues with its consolidation phase.
- From a recent peak of $24.81, LINK’s value decreased to a low of $22.90 in the last 24 hours.
- There was a notable price rally coinciding with the ETF announcement, indicating a potential consolidation attempt above the critical $23.00 level.
- Recovery to the $24.00 mark is deemed vital to reversing the current bearish trend, suggesting value-seeking investors might be stepping in amid emerging oversold conditions.
Technical Indicators
- LINK’s price dropped 4.67% from $24.61 to $23.46 recently.
- The trading range was limited to $1.84 between a high of $24.81 and a low of $22.90.
- Volume spiked to 6.58 million units, well above the average of 2.29 million.
- Resistance appears to be around $24.30; support is near $23.00.
- If the price fails to reclaim $24.00, sentiment is predicted to remain negative.
- A fall below the $23.40 support level may indicate increased downside risks toward $23.00.
Disclaimer: This article includes sections generated with AI tools, and has been reviewed by the editorial team for accuracy and adherence to standards.
