The Bitwise Chainlink ETF is being listed on the Depository Trust and Clearing Corporation (DTCC) platform with the ticker CLNK as an indicator that the fund is a single step closer to being traded.
The listing is included in the common paperwork in the preparation of clearing and settlement, and is not used to denote that the Securities and Exchange Commission (SEC) has given the signal of approval. Upon approval, the ETF will be able to launch but no date has been announced.
Chainlink awaits SEC approval of ETFs.
One of the major developments in the recent past, that was awaited by institutional investors interested in exposure to the Chainlink network, was the impending SEC approval of the Bitwise Chainlink ETF. In case of approval, the fund will open the possibility of massive involvement in LINK, the native token of the Chainlink ecosystem. Market analysts observe that listing of CLNK would increase liquidity and long-term demand of LINK.
Currently, LINK is trading at 15.45, equivalent to a 5% decrease during the last 24 hours and a 19.2% decrease during the last one month. Given the decrease in price, the trading has gone up with the news of the ETFs indicating that there is renewed interest in the trading by both retail and institutional traders.
Coinbase crowned custodian as Altcoin ETFs gather interest.
The Chainlink fund S-1 filing submitted by Bitwise to SEC indicated that Coinbase Custody Trust Company will serve as the custodian to the Chainlink fund. The ETF will enable in-kind creation and redemption so that the investors can trade LINK with fund shares and redeem the token with the fund shares on sale.
Bitwise has also submitted a number of other crypto ETFs that include Solana, XRP, Dogecoin, and Aptos. The company has a Bitcoin ETF that currently contains more than 40,730 bitcoin worth approximately $2.3 billion and an Ethereum ETF that contains more than 113,605 ETC worth approximately $385 million. The recent Solana Staking ETF released by the company in late October was subscribed to by over $420 million in the first week, which demonstrates that the interest of the investors in the blockchain-related investment items is high.
Increasing industry traffic and XRP ETF listings
The CLNK listing is a part of a larger trend of institutional interest in blockchain ETFs. Grayscale has also submitted a spot Chainlink ETF to trade underGLNK on NYSE Arca pending approval.
In the meantime, the DTCC has issued five XRP ETFs over the last few months with issuers including Bitwise, Franklin Templeton, 21Shares, Canary Capital and CoinShares. Such funds are in the pre-launch stage and are awaiting SEC approval. After the DTCC listings, XRP surged by 12% before falling back to its position of $2.40, a 3.33% drop in a day.
Experts in the industry such as Bloomberg Intelligence, Eric Balchunas, observe that a majority of the funds that have made it to the DTCC phase ultimately become funds as long as the regulatory environment is good. With the SEC reducing the time it takes to review the procedures in the current U.S. government shutdown, analysts expect that approvals may occur shortly after the operations get back to normal. Bitwise Chainlink ETF appearance in DTCC demonstrates the increasing institutional support of the digit asset investment products.
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