First U.S. Spot LINK ETF Set to Launch This Week After SEC Clears Grayscale Conversion

Digital asset manager Grayscale has received the U.S. Securities and Exchange Commission’s (SEC) approval to release the first-ever spot Chainlink (LINK) exchange-traded fund, which could begin trading as soon as December 2. 

This would mark the third crypto-backed ETF launched by Grayscale in just two weeks, following the debuts of its spot XRP (GXRP) and Dogecoin (GDOG) Trust ETFs.

Grayscale’s Spot Chainlink ETF Could Begin Trading on the NYSE This Week

ETF Institute co-founder Nate Geraci went on X to confirm the news, stating that the investment vehicle backed by LINK is “set to launch this week” as Grayscale was able to “uplist/convert” its private Chainlink Trust fund into an ETF. This unlocks regulated exposure to the 14th largest cryptocurrency by market capitalization.

The new structure would allow the Chainlink Trust to be converted into an ETF that generates returns by tracking the spot price of LINK. The product, expected to be listed on the NYSE Arca exchange under the GLINK ticker symbol, would also be staking-enabled, allowing investors to earn yield on their initial investment.

Grayscale had submitted an S-1 registration statement with the SEC for its Chainlink Trust in late September, which formalized its conversion into an ETF. Under the SEC’s new listing standard, if the agency does not comment on the product 20 days from the date of filing, then it will be automatically approved.

The company has long been bullish on the Chainlink ecosystem, dubbing it in a research report as a “critical connective tissue” that links crypto to traditional finance. Researchers Zach Pandl and Michael Zhao framed LINK as the largest asset by market capitalization in the utilities and services sector of crypto, since it helps institutions with their real-world asset tokenization efforts. They also noted that it is the largest non-Layer 1 cryptocurrency in the market.

The asset manager is aiming for GLINK’s listing to align with the SEC’s new Generic Listing Standards for crypto ETFs, under which an ETF can begin trading on a federally regulated exchange without the need for a 19b-4 filing to list and trade shares of the fund.

GLINK is the second LINK-backed ETF to be registered under the 33 Act, with Bitwise’s CLNK being the first. However, the staking feature in Grayscale’s fund has raised concerns, with analysts suggesting that the SEC is still studying how yield-related processes should work in crypto-backed securities.

By contrast, CLNK is not a staking product and has already been listed on the Depository Trust & Clearing Corporation (DTCC) website. This is a procedural step part of the standard clearing and settlement process and does not indicate regulatory approval.

Geraci’s statement is in line with Bloomberg ETF analyst Eric Balchunas’s prediction from last week that Grayscale’s product could be launched on December 2. He also said that over 100 crypto ETFs could be launched in the next six months.

Institutional Demand for LINK on the Rise due to Cross-Chain Interoperability and Staking Features

Institutional demand for LINK has been on the rise this year. In August, real estate developer CaliberCos became the first publicly traded US company to establish a Chainlink treasury.

The Nasdaq-listed firm’s board of directors passed a Digital Asset Treasury Strategy and Policy that allocates part of its treasury funds for LINK investments. The purpose of this program is to generate returns through a long-term increase in the value of LINK and also earn incentives from staking the token on the Chainlink network.

In June, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) was used to conduct cross-border exchange of Hong Kong’s e-HKD digital currency and Australian dollar stablecoin, A$DC. The initiative is part of the second phase of Hong Kong’s CBDC project, where authorities observed how blockchain technology could be leveraged for real-time cross-border settlements.

Leading institutional players such as Visa, the Australia and New Zealand Banking Group (ANZ) – issuer of A$DC, Fidelity International, and ChinaAMC were participants in the pilot project. CCIP facilitated the payment-versus-payment (PvP) mechanism for digital currency swaps, while the transactions were executed through the Digital Transfer Agent (DTA) model, ensuring multichain support and compliance across several jurisdictions.

Earlier this year, Chainlink’s CCIP was also tapped by World Liberty Financial – a Decentralized Finance project endorsed by U.S. President Donald Trump – for expanding multi-chain support for its USD1 stablecoin. This initiative boosted the dollar-pegged stablecoin’s cross-network functionality.

At the time of writing, Chainlink (LINK) is trading $12.16 – down 6.61% in 24 hours.

Also Read: Why Did Crypto Crash Today: Bitcoin Drops Below 90K,  Can BTC Rebound Soon?