Key takeaways
- Bitwise Chainlink ETF gains approval for listing on NYSE Arca.
- ETF trading could begin as early as tomorrow.
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Bitwise’s Chainlink ETF has been cleared for listing on NYSE Arca following regulatory approval. The product could begin trading as early as tomorrow.
The Bitwise Chainlink ETF is designed to provide investors with exposure to the price of Chainlink (LINK), the 20th largest crypto asset by market capitalization, through a traditional brokerage account that aims to reduce operational and custody barriers for investors who want exposure to the asset without owning or managing the tokens themselves.
The fund will directly own LINK, whose shares will be traded on NYSE Arca under the symbol CLNK. He will not engage in staking; However, Bitwise plans to seek approval to add staking as a secondary purpose in the future, which could allow the trust to earn additional LINK over time.
The ETF charges a management fee of 0.34%. For the first three months after listing, Bitwise will waive full sponsorship fees on the first $500 million in assets, temporarily reducing costs for early investors.
Chainlink is a decentralized oracle network that allows smart contracts on blockchains to securely interact with external data sources and off-chain systems.
LINK was trading at $14 at press time, up 7.5% in the past 24 hours, according to CoinGecko. The gains follow a market-wide rebound earlier in the day that took Bitcoin to $96,000.
The Bitwise Chainlink ETF is the second US spot fund linked to LINK, approved shortly after Grayscale converted its Chainlink Trust into a spot ETF (GLNK) late last month. The GLNK fund has reached $87.5 million in assets, according to the latest disclosure.
