The Bitwise Chainlink ETF was added to the Depository Trust & Clearing Corporation (DTCC) eligibility list under the ticker CLNK on Wednesday. The initiative is part of the standard clearing and settlement preparation process and doesn’t imply that the ETF has received regulatory approval.
The listing only confirms that the fund is poised for trading after receiving regulatory approval from the Securities and Exchange Commission (SEC). Although no official launch date has been announced, the listing aligns with broader efforts by asset managers to introduce blockchain-linked investment products with institutional backing.
Bitwise’s Chainlink ETF awaits SEC approval
The approval of the ETF could introduce major institutional access to the Chainlink network. The emergence of CLNK also boosts the liquidity and market demand for the LINK token.
At the time of publication, the world’s 12th-largest digital asset, LINK, is trading at $15.45, down nearly 5% in the past 24 hours. The digital asset has also declined by approximately 19.2% over the past 30 days. LINK’s trading volume also surged post-announcement, suggesting that there’s growing participation from retail and institutional traders.
In its S-1 filing with the SEC, Bitwise revealed that Coinbase Custody Trust Company will serve as custodian for its Chainlink fund. The ETF will also support in-kind creation and redemption, allowing investors to buy shares with LINK and receive the token when they sell their shares.
Bitwise has also recently applied to list exchange-traded funds tracking Solana, XRP, Dogecoin, and Aptos, separately. At the time of publication, Bitwise’s Bitcoin ETF holds more than 40,730 worth about $2.3 billion, while its Ethereum ETF holds more than 113,605 ETH worth more than $385 million.
Other Chainlink ETFs are in the pipeline, showing the industry’s interest in such products as they await approval and launch. There has been an accelerating trend of institutional investment directed towards Chainlink, with Grayscale also submitting a proposal for a spot Chainlink ETF. The fund would be listed on the NYSE Arca under the ticker GLNK if approved.
Bitwise’s Chainlink ETF listing follows the launch of its Solana Staking ETF in late October. LSEG data revealed that the fund already attracted more than $420 million in its first week.
JPMorgan also predicted that such altcoin ETFs could attract $14 billion in their first six months, with nearly half of that amount potentially flowing into SOL funds. Bitwise’s chief investment officer, Matt Hougan, acknowledged that the firm likes being first, but also follows the rules.
DTCC lists five XRP ETFS
Bitwise and other investment firms, including Franklin Templeton, Canary Capital, 21Shares, and CoinShares, have also recently filed to launch ETFs tied to Ripple’s XRP. On Tuesday, the DTCC listed the five XRP funds on its website, classifying them as active and in the pre-launch stage. The listing doesn’t imply that the funds will be approved by the SEC, but it represents a crucial step that usually precedes the official launch.
The inclusion of those funds on the DTCC list caused a strong market reaction in XRP. On-chain data showed that the digital asset surged nearly 12% in a matter of hours after the announcement. At the time of publication, XRP is trading at $2.40, down about 3.33% in the last 24 hours. XRP has also dropped by more than 5.7% in the last 30 days.
Senior ETF analyst Eric Balchunas at Bloomberg Intelligence argued that most funds that reach the DTCC listing stage eventually launch, especially if the regulatory environment is favorable. Balchunas’ remarks come as the SEC has relaxed certain procedures in recent weeks for reviewing ETFs amid the ongoing U.S. government shutdown. The change allows issuers to submit coordinated amendments to their S-1 filings. Nate Geraci, president of NovaDius Wealth Management, believes that the debut of the crypto fund could happen in a matter of days once the current government shutdown ends.
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Source: https://www.cryptopolitan.com/bitwise-chainlink-etf-on-dtcc/
