Grayscale Chainlink Trust (GLNK) Institutional Favorite at a 200% Premium

Key Takeaways:

• Grayscale Chainlink Trust (GLNK) traded at a 200% premium.
• What does the wide gap between LINK and GLNK prices mean?
• LINK’s spot price doubled since Oct. 20.

YEREVAN (CoinChapter.com) – As of Nov 8, the Grayscale Chainlink Trust shares (GLNK) traded at a 200% premium to LINK’s spot price. But what does it mean for investors and which should they prefer? LINK or GLNK? To explain the situation and its implications, let’s start with the Trust structure and its product.

GLNK or LINK – which to choose?

Grayscale is the largest crypto investment vehicle with a variety of products, such as its Bitcoin-based Trust, which the company recently sought to convert to an exchange-traded fund, and won a lawsuit against the US Securities and Exchange Commission.

Similarly, Chainlink Trust offers exposure LINK, reducing the associated risks. Grayscale introduced the Trust in May 2022 as a regulated product. Since then, the product has attracted investors, with $3.95 million in assets under management (AUM).

As seen in the performance sheet from Grayscale, the net asset value (NAV) stood at $12.3, while the GLNK price rocketed to $39. This means that the Trust is offering its product at a triple price, or a 200% Premium.

Generally, such surges indicate institutional interest specifically, as GLNK is one of the very few altcoin-based regulated products in the US. As mentioned, Grayscale also offsets the risks associated with crypto investments, making the Trust more attractive for institutions, which are ready to buy at a 200% premium.

Notably, unlike other Grayscale Trusts, GLNK shares are not redeemable for the underlying asset – LINK. This means investors can only exit their positions by selling the shares to another party.

Chainlink (LINK) interest soared after SWIFT deal

As CoinChapter reported, GLNK’s underlying asset continues to reap the benefits of its involvement with the Society for Worldwide Interbank Financial Telecommunications (SWIFT) since September 2023. In the week ending Nov. 5, Chainlink attracted a $2 million fund inflow, according to the latest weekly report by CoinShares.

Considering the spectrum of its use cases, such as scalability, computation services, and cross-chain connectivity, some analysts foresee Chainlink’s market cap surpassing Ethereum.

As of Nov. 8, Chainlink’s market cap reached $8 billion, as opposed to Ethereum’s $228 billion. However, LINK’s 100% rally since Oct. 20 was impressive regardless. As a result, the coin reached its 19-month high of $14.5 on Nov. 8.