A significant move by asset manager Bitwise signals growing institutional interest in decentralized finance (DeFi) infrastructure. The firm has applied to launch the first-ever spot Chainlink Exchange-Traded Fund (ETF) in the United States, aiming to provide mainstream investors with direct, regulated exposure to a foundational digital asset.
The Proposed Bitwise Chainlink ETF
Filed with the Securities and Exchange Commission (SEC) on August 26, the proposed Bitwise Chainlink ETF would issue shares representing fractional interests in Chainlink (LINK) tokens held by the trust. Designed to passively mirror the value of its underlying LINK holdings, the fund’s pricing would rely on the CME CF Chainlink–Dollar Reference Rate, with Coinbase Custody Trust Company serving as custodian. Chainlink itself is a critical decentralized oracle network, providing essential off-chain data to smart contracts across various blockchain networks. Its LINK token, currently the 11th largest digital asset by market capitalization, incentivizes node operators and has seen substantial institutional demand due to its partnerships with major traditional finance entities like Swift, Visa, Mastercard, and JPMorgan.
Bridging Decentralized Infrastructure with Regulated Markets
The potential approval of this ETF represents a pivotal step in connecting decentralized infrastructure with regulated financial markets. By wrapping Chainlink into a familiar ETF format, Bitwise seeks to expand investment access beyond existing Bitcoin and Ethereum ETFs. This initiative not only acknowledges Chainlink's vital role in the broader blockchain ecosystem but also underscores the escalating demand for investment vehicles focused on assets foundational to the growth and operation of decentralized finance. It highlights a maturing landscape where essential DeFi components are increasingly recognized and sought after by institutional players.
