Grayscale to Launch First US Spot Chainlink ETF This Week, Igniting Altcoin ETF Race

Grayscale is set to launch the first U.S. spot Chainlink (LINK) exchange-traded fund (ETF) as early as this week, according to ETF Institute co-founder Nate Geraci and backed by Bloomberg Intelligence analyst Eric Balchunas.

Key Developments:

• LINK ETF Launch: Grayscale plans to convert its existing private Chainlink trust into a publicly traded, spot-based ETF. Bloomberg Intelligence analyst Eric Balchunas anticipates a debut date of December 2.
• The Competition: The launch occurs as competition intensifies, with rival asset manager Bitwise also preparing its own spot LINK ETF.
• Future Wave of Funds: This is just the beginning; Balchunas warns that the U.S. market could see a wave of over 100 new digital-asset ETFs over the next six months, with at least five spot crypto funds scheduled to launch within days. This follows a year of regulatory easing in Washington.
• Fund Structure: The Grayscale LINK ETF will track the spot price of Chainlink and will include returns from staking where regulatory rules permit.

Altcoin ETFs Steal the Spotlight

The push into a Chainlink ETF comes amid a broader surge in demand for altcoin ETFs, which are currently eclipsing Bitcoin funds in performance metrics:

• New Funds: Over the past month, issuers have rolled out ETFs tied to Solana, XRP, and Dogecoin, with more XRP and Dogecoin funds scheduled to list soon.
• High Inflows: The Canary Capital XRP ETF (XRPC) debuted with $58 million in net inflows, setting the record for the highest opening-day haul for any ETF this year.
• Success Story: The Bitwise Solana Staking ETF (BSOL) launched with $57 million and has rapidly accumulated over $660 million in assets within three weeks without a single day of outflows.
• Upcoming Listings: The New York Stock Exchange (NYSE Arca) has also approved Grayscale’s XRP and Dogecoin ETFs for trading.

The new Chainlink fund highlights Grayscale’s view of LINK as a crucial bridge supplying data to both traditional finance and crypto platforms.