Inside the Chainlink ETF race: Bitwise’s no staking strategy vs Grayscale’s yield
Could this be the calm before a breakout?
Key Takeaways
What does the Bitwise Chainlink ETF represent?
It’s a proposed spot ETF that would allow institutional investors to gain exposure to Chainlink (LINK) without directly holding the token.
What do analysts say about LINK’s price outlook?
Analysts believe that a move above $16 could trigger a bullish reversal, while failure to do so may push the price down toward $11.60.
The Depository Trust and Clearing Corporation (DTCC) has listed Bitwise’s Spot Chainlink [LINK] exchange-traded fund (ETF) under its “active and pre-launch” category.
The ETF, registered under the ticker CLNK, marked a potential milestone in bringing institutional participation to Chainlink.
Will this push the SEC to approve the LINK ETF?
While the listing doesn’t confirm immediate approval from the U.S. Securities and Exchange Commission (SEC), it is widely viewed as a strong indicator that regulatory progress could be on the horizon.
Bitwise’s filing of the S-1 statement in August marked the first-ever proposal for a Chainlink Spot ETF. Obviously, this opened the door for institutions to gain exposure to the oracle-based token.
Soon after, Grayscale followed suit with its own Chainlink ETF proposal in September, signaling growing competition among asset managers seeking to capitalize on the rising demand for crypto-linked financial products.
Notably, Bitwise’s filing does not include any staking mechanism for LINK tokens.
In contrast, Grayscale’s proposal suggests the possibility of staking a portion of its LINK holdings, which could potentially generate additional yield for investors.
Other ETFs and their status
While the final approval rests with the U.S. SEC, recent trends indicate that certain crypto ETFs, such as those for Solana [SOL], Hedera [HBAR], and Litecoin [LTC], have gone auto-effective for listing and trading on exchanges.
Under specific conditions like a government shutdown, the SEC’s review process can be bypassed, allowing an issuer’s S-1 filing to become automatically effective after 20 days without formal intervention.
This regulatory nuance could accelerate the timeline for Chainlink ETF approvals, depending on external circumstances.
However, despite the positive momentum surrounding ETF developments, LINK’s market performance has faltered.
LINK’s price dropped 7% in the last 24 hours, slipping from $16.50 to around $15.36, before slightly recovering to $15.50 at press time — a 3.9% daily fall.
According to CoinMarketCap, trading volume has slumped by nearly 24%, standing at $667.51 million, reflecting weakening trader enthusiasm.
What are the technical indicators suggesting?
Moreover, data from Santiment showed that LINK’s Relative Strength Index (RSI) dipped below the neutral zone, suggesting that bearish sentiment dominates the market.
With Price Volatility on the rise, the short-term outlook for LINK appeared uncertain, even as institutional interest in the altcoin continued to build through ETF initiatives.
In fact, AMBCrypto’s recent analysis further showed that LINK’s short-term outlook remained clouded by weak price momentum.
As per the analysis, the surge in social sentiment and accumulation activity suggested that seasoned investors may be positioning for a rebound.
However, unless LINK reclaims the $16 resistance level, the risk of a further dip toward $11.60 persists.
But, for now, the market appears to be in a wait-and-watch phase, balancing cautious optimism with technical pressure.
