Grayscale Investments filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on September 5, 2025. The filing aims to convert the existing Grayscale Chainlink Trust into a publicly traded spot exchange-traded fund (ETF). The proposed product would list on NYSE Arca under the ticker symbol GLNK.
This filing takes advantage of the generic listing rules that NYSE Arca proposed earlier this year. These rules were designed to simplify the process for listing commodity-backed exchange-traded products, meaning the SEC may not need to review each product from scratch. The approach has already been applied to Bitcoin and Ethereum ETFs, and Grayscale is now attempting to extend it to Chainlink.
Cash Redemptions Planned, In-Kind Settlements Possible Later
The fund would hold Chainlink (LINK) tokens directly, giving investors regulated exposure to the asset without having to use crypto wallets or exchanges. Coinbase Custody is listed as the custodian, while BNY Mellon would act as administrator and transfer agent.
At launch, share creation and redemption would be conducted in cash transactions. This means liquidity providers would deposit dollars to create shares and redeem them for cash when needed. Grayscale has left the option open to introduce in-kind redemptions later, where investors could exchange ETF shares for actual LINK tokens. This would depend on future regulatory approval.
Grayscale’s prospectus also introduces a provision for staking LINK tokens held in the ETF. Staking allows holders to lock up tokens on the network in return for additional LINK rewards. Including this option in a regulated product is unusual. The company acknowledged that it could only move forward with staking if it receives regulatory and tax approval.
Bitwise Chainlink ETF Filing Signals Competition in Altcoin ETF Race
Grayscale’s application is not the only one. Bitwise Asset Management submitted a similar filing for a Chainlink ETF in August 2025. The competition shows that asset managers see demand for regulated altcoin exposure.
The SEC’s decision will therefore serve as a test case. If approved, it could open the door to ETFs tied to other altcoins. If denied, it would show that regulators still view Bitcoin and Ethereum as the only assets mature enough for U.S. exchange-traded products.
News of the filing has already influenced market sentiment. Chainlink’s price is trading near $23, and technical charts show a bullish setup. Analysts project a target toward $34 if momentum continues.
From a regulatory perspective, the generic listing pathway increases the odds of approval. However, risks remain. The SEC has historically delayed or denied altcoin ETFs over concerns about liquidity, price manipulation, and investor protection. If Grayscale’s filing is accepted, it could pave the way for a wave of altcoin ETFs. If rejected, it would signal that the SEC is still cautious about moving beyond Bitcoin and Ethereum.
