Bitwise files S-1 for Chainlink ETF with SEC

Bitwise submitted the filing to the SEC on Tuesday morning. The San Francisco-based crypto asset manager wants to create an ETF that tracks the price of LINK tokens.

The proposed ETF would allow investors to buy and sell shares through regular brokerage accounts without holding the cryptocurrency directly. Investors could trade the ETF shares during normal market hours like traditional stocks.

Chainlink operates a decentralized oracle network that connects blockchains with real-world data and off-chain computations. The LINK token pays for oracle services and helps maintain the network.

The SEC will review the application through multiple stages. The process includes initial evaluation, public comment periods, and possible amendments to the filing. Regulators typically examine concerns about market manipulation, asset custody, and investor protection.

Bitwise confirmed the filing but has not released additional statements. The company previously said it aims to create investment products that connect traditional finance with digital assets.

Bitwise was founded in 2017 and manages several crypto investment funds focused on Bitcoin, Ethereum, and other digital assets. The firm has experience launching cryptocurrency investment products for institutional and retail clients.

Chainlink launched in 2017 as a blockchain infrastructure project. DeFi protocols and enterprise blockchain projects use Chainlink’s oracle services to access external data sources.

The LINK token is required to pay node operators who provide data to smart contracts. Token holders can also stake LINK to help secure the network and earn rewards.

No timeline was provided for the SEC’s review process. The agency has approved spot Bitcoin ETFs but has not yet approved ETFs for other cryptocurrencies.