- Grayscale’s filing with the SEC aims to convert its Chainlink Trust into an ETF, seeking approval for the NYSE Arca listing.
- The ETF will offer institutional investors access to Chainlink, with Coinbase and BNY Mellon serving key operational roles.
- Grayscale’s registration depends on the SEC’s approval of the proposed Generic Listing Standards for crypto ETFs.
Grayscale has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for its Grayscale Chainlink Trust (LINK), aiming to convert it into an exchange-traded fund (ETF). This filing makes Grayscale the second asset manager to submit such a proposal for Chainlink after Bitwise, which filed earlier. The filing signals Grayscale’s intent to list the ETF on the New York Stock Exchange (NYSE) Arca, subject to SEC approval.
The proposed Chainlink ETF is designed to offer institutional investors direct exposure to LINK, the native cryptocurrency of the Chainlink network. The Bank of New York Mellon is set to serve as the trust’s transfer agent and administrator, while Coinbase will act as the fund’s prime broker. Coinbase’s Custody service will also take on the role of custodian for the fund. Grayscale aims to provide investors with access to LINK through this structured product, bringing a more formal, regulated investment vehicle to market.
Seeking Approval of Generic Listing Standards
Grayscale’s filing is contingent on the SEC’s approval of the proposed Generic Listing Standards for crypto ETFs. These standards, once approved, would allow crypto ETFs like the Grayscale Chainlink ETF to list on the NYSE without needing a 19b-4 filing. Grayscale indicated that it would not seek the effectiveness of its registration statement until the SEC adopts these rules or determines that such approval is unnecessary. The firm has prepared its prospectus in anticipation of a favorable outcome regarding the Generic Listing Standards.
In its filing, Grayscale also outlined its plans to allow for in-kind creation and redemption of ETF shares, a feature already approved for Bitcoin ETFs by the SEC. While the SEC has yet to approve this aspect for the Chainlink ETF, market observers expect such approval based on the commission’s stance on Bitcoin ETFs. Grayscale also mentioned that the Trust may engage in staking activities, though it has not yet met the necessary conditions for this.
LINK Price Moves Upward
Following the news of Grayscale’s filing, Chainlink’s price has seen an uptick, rising by 2% in one day. Currently trading around $23, the token has gained over 3% in the last 24 hours. The positive sentiment surrounding the potential approval of a LINK ETF has played a role in the price surge.
