The management at Bitwise has filed with the SEC to launch an exchange-traded fund based on Chainlink (LINK) which would be the first of its kind to provide a direct exposure to LINK in the U.S. The ETF will follow the price movement of Chainlink in the form of CF Chainlink-Dollar Reference Rate that is traded in CME, Coinbase Custody will hold the tokens.
Passive Fund Simple Exposure to LINK
This ETF will not be sold or purchased according to the market conditions as compared to actively managed funds. Rather, it holds LINK passively, providing a compliant and simple route to exposure to the asset to institutional investors.
Chainlink’s Institutional Use Cases Are Growing
Chainlink is a market leader in decentralized oracles, ranking as the 11 th-largest cryptocurrency by market capitalization. It provides real world data to blockchains and is the powerhouse behind much of DeFi. Chainlink has also entered into collaboration with the historical financial leaders, such as Swift, Visa, Mastercard, and JPMorgan. There have been subsequent demand generation in institutional demand of LINK through these integrations.
TF May Broaden DeFi Infrastructure Access
By reflecting the real-time value of LINK held in custody and minus fees the ETF is aimed to reflect the real-time value of LINK. Bitwise indicated that it will not apply active management and hedging. This streamlines exposure in a manner that is compliant with conventional investment design.
Contrast CBDCs, Endorse Cryptocurrency Innovation
The filing further highlights cryptocurrency making its way into regulated systems coupled with its resistance to central bank digital currencies. The fund model also enables investors to have access to decentralized infrastructure, but without the dependence of speculative trading, and on-chain wallets
