- Grayscale has filed for a Chainlink spot ETF in the US.
- The investment firm wants to convert its Chainlink Trust into a spot ETF.
- If approved, the new ETF would be listed on NYSE Arca under the GLNK ticker.
Grayscale Investments has officially filed paperwork with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Chainlink Trust into a spot Chainlink (LINK) ETF. The formal 19b-4 application contains a pivotal detail: a provision that would allow the proposed ETF to stake a portion of its LINK holdings to generate yield for its investors.
If the SEC approves the proposal, the fund would be listed on the NYSE Arca under the ticker symbol GLNK, establishing a new type of regulated crypto product in the U.S. market.
Why is On-Chain Yield a Game-Changer for ETFs?
By including staking directly in the filing, Grayscale is attempting to merge on-chain yield with a traditional, regulated investment vehicle. The proposal specifies that the GLNK ETF could use third-party providers to stake its LINK tokens, creating an additional stream of returns for shareholders on top of any price appreciation.
This move suggests the next wave of crypto ETFs won’t just be about providing market access; they’ll be about integrating the unique financial mechanics of the assets themselves.
Related: Can Grayscale ETFs Push ADA Above $0.88 and DOT Toward $5.70?
According to Grayscale’s filing, the proposed ETF product will offer direct exposure to the price of LINK. The firm will rely on Coinbase Custody Trust Company as the fund’s custodian, which would be listed on NYSE Arca under the GLNK ticker, as earlier stated.
So, How Would the GLNK ETF Actually Work?
Depending on the tax and regulatory conditions, the Grayscale Chainlink Trust ETF plans to stake a portion of its LINK assets. That would serve as an additional revenue source for investors. Also, if the conditions permit, the company will adopt third-party providers for staking, while assets remain in custodian wallets, with rewards retained, sold, or distributed.
The potential Grayscale spot Chainlink ETF would serve as an additional channel for attracting institutional investors into the Chainlink ecosystem. Typically, such a development would boost LINK’s demand and trigger a price increase. TradingView’s data show that LINK was trading for $22.93 at the time of writing, reflecting a 5.86% gain within the past 72 hours and after Grayscale made its latest filing.
Related: Grayscale Files for Cardano (ADA) and Hedera (HBAR) ETFs, Prices Surge
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/grayscale-chainlink-spot-etf-staking-yield/
