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- Bitwise filed with the SEC to launch the first Chainlink ETF.
- The fund aims to track LINK through a regulated structure.
- Investors face both opportunities and risks in this new product.
Bitwise Asset Management has taken another step into the digital asset market. The firm submitted a preliminary S-1 filing to the U.S. Securities and Exchange Commission. The filing outlines plans for the Bitwise Chainlink exchange-traded fund, a regulated product designed to mirror the value of LINK, the token of the Chainlink oracle network.
The move highlights the growing push to expand crypto-linked investment vehicles. If approved, the fund would offer traditional investors a way to gain exposure to Chainlink without directly holding the token.
Bitwise Sets Fee Structure for Chainlink ETF
The filing describes the structure of the proposed Trust. It will issue common shares known as beneficial interest shares, which will be listed on a regulated exchange under a ticker that is yet to be announced. The goal of the Trust is to provide exposure to the value of Chainlink held in custody, minus operating expenses.
The Trust will calculate its net asset value through the CME CF Chainlink-Dollar Reference Rate. This benchmark is run by CF Benchmarks and aggregates data from major trading platforms. Bitwise Investment Advisers will act as the sponsor and manager of the fund.
Investors will be able to create or redeem shares in units of 10,000, called Baskets. These Baskets can be purchased using either Chainlink tokens or U.S. dollars, depending on the method chosen. Redemptions can also take place in-kind, where the Trust distributes Chainlink directly, or through sales that provide cash proceeds.
Bitwise Sets Fee Structure for Chainlink ETF
The Trust will charge a unitary management fee, which covers all sponsor-related costs. Bitwise Asset Management, the parent company, has provided seed capital to launch the fund. The initial investment will establish the Trust’s base value and confirm its financial condition.
Investors will access the shares through brokers, similar to other ETFs. Market supply and demand, along with the value of Chainlink, will influence trading prices. Shares may trade at a premium or discount to the Trust’s net asset value.
The filing stresses that this product carries significant risks. Like direct ownership of Chainlink, the ETF faces market volatility, regulatory uncertainty, and liquidity concerns. The document warns that investors should only enter if they can accept the higher risk profile compared to traditional exchange-traded products.
Chainlink ETF Filing Expands Crypto Investment Options
This filing adds to the growing list of crypto-related ETFs in the U.S. While Bitcoin and Ethereum products dominate headlines, new filings signal wider interest in other digital assets. Chainlink’s role in powering blockchain oracles makes it a unique candidate for institutional investment exposure.
Bitwise has positioned itself as one of the first movers for bringing regulated crypto products to market. The filing, if sanctioned by the regulators, will witness the Bitwise Chainlink ETF mark a new chapter for the company and the rising token-based investment products space.
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