Bitwise Seeks to Launch First-Ever Spot Chainlink ETF

Top asset manager Bitwise has filed a preliminary S-1 registration statement with the U.S. SEC to launch a Chainlink (LINK) spot ETF.  The proposed fund will provide investors with direct exposure to Chainlink, without having to buy or custody the tokens themselves. According to the filing, the ETF’s investment objective is to track the spot market value of LINK, without the fees and other expenses.  The net asset value (NAV) of the ETF is based on the CME CF Chainlink–Dollar Reference Rate – New York Variant.  If the SEC approves the filing, the Bitwise Chainlink ETF will list and trade on a U.S.-based equities exchange. However, the exact name of the trading platform has not been disclosed. The asset manager has also yet to reveal the ticker symbol for the ETF.  Bitwise to Provide Seed Funding  Bitwise Investment Advisers, a subsidiary of Bitwise Asset Management, will serve as the sponsor and manager of the fund. Notably, Bitwise Asset Management has agreed to provide the seed funding to get the ETF started. However, the financial details of the seed investment remained confidential in the hours leading up to press time.  The Chainlink tokens backing the trust will be held in Coinbase Custody. Each share of the proposed ETF will represent ownership of the Chainlink tokens held by the trust.  The filing proposed that shares of the ETF be created and redeemed in large baskets, with each containing 10,000 shares. Given the magnitude of these transactions, the filing specified that authorized participants will handle the creation and redemption of these baskets.  Like all investment products, investors of the Bitwise Chainlink ETF will pay an undisclosed management fee. Since it is a preliminary filing, Bitwise has not revealed the exact percentage of this fee.  Although Chainlink is a Proof-of-Stake network, the filing did not indicate any plans to stake the LINK tokens of the trust, which could generate additional rewards for investors.  First Spot ETF Filing for Chainlink? Meanwhile, popular Bloomberg analyst Eric Balchunas suggested that the Bitwise filing is the first-ever spot ETF for Chainlink. He contrasted the Bitwise proposed ETF with a related product from Tuttle Capital.  For context, the Tuttle Chainlink ETF is a leveraged product designed to give investors twice the daily exposure to LINK’s price movements. Unlike the Bitwise Chainlink ETF, Tuttle's product will not hold LINK tokens.  https://twitter.com/EricBalchunas/status/1960288621740556336