- Chainlink (LINK) rises 5% after Bitwise submits a spot ETF filing with the SEC.
- Bitwise ETF plans to use Coinbase Custody Trust for secure token storage.
- Chainlink strengthens its DeFi position with partnerships, including SBI Group for cross-chain projects.
Chainlink (LINK) rebounded 5% from an intraday low of $22.94 on Tuesday, August 26, after asset manager Bitwise filed for a Chainlink spot ETF. The cryptocurrency traded at $23.96 during the session, showing a 1.9% decline in the past 24 hours but maintaining recovery momentum from earlier losses.
TradingView data confirmed the uptick followed Bitwise’s Form S-1 submission with the U.S. Securities and Exchange Commission (SEC). The filing detailed plans for the Bitwise Chainlink ETF, which will store tokens through Coinbase Custody Trust Company. If approved, the product could increase institutional demand for LINK through capital inflows from traditional investment vehicles.
Details of the Bitwise Chainlink ETF
The Bitwise filing stated that the ETF will allow both cash-based and in-kind creation and redemption processes. Unlike active funds, the proposed ETF will not engage in direct trading beyond its provisions for Chainlink. For the fund to move forward, an exchange must file a 19b-4 form to list and trade its shares, starting the SEC’s review process.
The SEC will then follow its standard procedures, including an initial evaluation, potential public comments, and amendments before issuing a final decision. If approved, the fund could give broader access to pension funds, hedge funds, and other institutional investors.
Market and Ecosystem Impact
Bloomberg analyst Eric Balchunas noted that this represents the first true spot ETF filing for Chainlink. Tuttle Capital had previously filed for a 2x leveraged Chainlink ETF, but that product falls under a different regulatory structure. The Bitwise filing stands out because it reflects direct institutional demand for LINK exposure.
At the same time, Chainlink’s own initiatives continue to drive token activity. Recent reports show the Chainlink reserve now holds more than 150,000 LINK tokens. Partnerships also play a key role, with Japan’s SBI Group recently announcing collaboration with Chainlink to explore cross-chain tokenized real-world assets through the Cross-Chain Interoperability Protocol (CCIP).
The proposed ETF, combined with these developments, positions Chainlink as an increasingly important infrastructure layer for the DeFi sector. Its secure price oracles and interoperability solutions continue to support adoption across financial institutions and decentralized networks.
