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

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