What You Should Know:
- Grayscale submitted a proposal to convert its Chainlink Trust into an exchange-traded fund (ETF).
- The trust currently holds approximately $29 million in assets.
- Their filing may incorporate a staking component through third-party services.
Grayscale has approached the U.S. Securities and Exchange Commission (SEC) with plans to transition its existing Chainlink Trust into a spot ETF.
The proposed ETF, if greenlit, would be traded on NYSE Arca under the ticker GLNK, as outlined in a recent S-1 registration statement submitted to the SEC. This is a requisite document for official ETF applications.
Chainlink’s LINK token has surged by 3% within the last 24 hours, coinciding with a rally in alternative cryptocurrencies such as XRP (up 2.6%), SOL (up 5%), and DOGE (up 7.4%).
Moreover, the filing from Grayscale includes a possible staking arrangement. Should this be permitted, the fund may utilize third-party staking providers while the LINK tokens remain in custody. The rewards from staking could either be retained by the fund, allocated to investors, or sold to manage expenses, subject to forthcoming regulatory suggestions.
This new offering would evolve from the Grayscale Chainlink Trust, active since February 2026, which currently oversees nearly $29 million in assets. The Coinbase Custody Trust Company would act as the custodian.
Grayscale mentioned that the ETF will execute share transactions in cash, similar to recently authorized spot Bitcoin and Ethereum ETFs. However, the provision for in-kind redemptions could be introduced if future regulatory guidance allows it.
This application is part of Grayscale’s wider vision to transition several single-asset crypto trusts into ETFs. Other proposals in the pipeline include funds linked to Solana, Dogecoin, and XRP.
The SEC, led by Chair Paul Atkins, has yet to approve or reject any of the ongoing applications, but this hasn’t deterred firms from preparing innovative products believed to be among the first in their respective segments.
Upon approval, the GLNK ETF would provide traditional investors with a regulated channel to access Chainlink’s price dynamics, which supports decentralized data feeds for blockchain technologies and smart contracts. Adding a staking component could also offer an income opportunity not yet accessible in the majority of U.S. crypto ETFs.
Presently, the market exhibits optimism, with LINK among today’s top gainers in the cryptocurrency sphere.
