- Grayscale has filed to convert its Chainlink Trust into a spot ETF (GLNK), potentially with staking features.
- Coinbase Custody will serve as custodian, with cash creations/redemptions mirroring Bitcoin and Ethereum spot ETFs.
- LINK rallied 5% to $23.14 as optimism grows around SEC approval under the pro-crypto Trump administration.
Grayscale is back in the spotlight with a bold new filing that could reshape how investors gain exposure to Chainlink (LINK). The firm submitted an S-1 registration with the Securities and Exchange Commission (SEC), aiming to convert its existing Chainlink Trust into a fully tradable spot ETF on NYSE Arca under the ticker GLNK. If approved, it wouldn’t just give Wall Street direct access to LINK’s price — it could also include a staking feature, something that has crypto investors buzzing.
The proposal highlights Coinbase Custody Trust Company as the custodian, ensuring institutional-grade security. What makes this filing stand out is the potential for a staking component. If tax and regulatory conditions align, Grayscale may allocate part of its LINK holdings to staking via third-party providers, with rewards either distributed, sold, or retained. In other words, investors wouldn’t just be tracking price; they might be earning yield too.
Unlike in-kind redemptions seen in some traditional ETFs, Grayscale’s plan follows the same model as spot Bitcoin and Ethereum ETFs approved last year — cash creations and redemptions. Still, if the SEC softens further, the fund could pivot toward in-kind processing in the future.
Why Chainlink Matters
For those new to the story, Chainlink isn’t just another crypto. It’s the backbone of decentralized data, feeding blockchains with real-world information like asset prices and market feeds. LINK, the native token, secures the network through staking and compensates node operators for delivering reliable data. Just last month, Chainlink announced a strategic LINK reserve — fueled by both onchain and offchain revenue — to ensure the project’s long-term sustainability.
A Wave of Crypto ETF Filings
Grayscale isn’t stopping at LINK. In recent weeks, the firm has filed for Avalanche and Dogecoin ETFs, adding to earlier bids for Litecoin, Solana, and XRP. Their Bitcoin and Ethereum Trusts already transitioned into spot ETFs in 2024, setting a precedent for what could come next.
They aren’t alone either. Heavyweights like 21Shares, Bitwise, Franklin Templeton, and VanEck are all fighting for SEC approval on altcoin ETFs ranging from Cardano to Polkadot. It’s a frenzy that reflects how quickly the U.S. market is pivoting under the Trump administration, which has already proven far friendlier to digital assets than its predecessor.
As of Monday, LINK is up nearly 5% to $23.14, riding the wave of optimism around this news.
