The institutional adoption of digital assets is expanding beyond Bitcoin and Ethereum, as Grayscale Investments takes a significant step toward diversifying the regulated cryptocurrency investment landscape. The asset manager recently filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC), proposing a spot exchange-traded fund (ETF) for Chainlink (LINK). This initiative signals growing interest in making a wider array of digital assets accessible to conventional investors through established financial vehicles, marking a new phase in the integration of cryptocurrencies into mainstream finance.
Should it receive regulatory approval, this proposed Chainlink ETF would trade on NYSE Arca under the ticker GLNK. The fund’s assets would be held by Coinbase Custody, ensuring institutional-grade security for the underlying LINK tokens. Designed to convert Grayscale’s existing Chainlink Trust into an ETF, the product would allow investors to gain exposure to LINK’s price performance without the complexities of direct token acquisition or self-custody. Similar to U.S.-based spot Bitcoin and Ethereum ETFs, the fund is structured to facilitate share creations and redemptions in cash, with Grayscale indicating potential future consideration for in-kind redemptions, pending regulatory permissions.
Expanding the Altcoin ETF Frontier
Grayscale’s move into Chainlink ETFs is not an isolated event but a strategic expansion beyond its foundational Bitcoin and Ethereum offerings. The firm has been at the forefront of this trend, successfully converting its flagship Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) into spot ETFs earlier in 2024, following a period of regulatory engagement. These landmark approvals are widely seen as having paved the way for similar products focusing on other prominent altcoins. In line with this vision, Grayscale has submitted applications for ETFs linked to a diverse portfolio of altcoins, including Avalanche (AVAX), Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), and XRP.
The pursuit of altcoin ETFs highlights an intensifying competitive landscape within the digital asset management sector. Other firms are also actively seeking to capture this emerging market demand. For instance, Bitwise filed its own application for a Chainlink ETF in August 2025, underscoring rising institutional interest in LINK. Beyond Chainlink, asset managers such as VanEck (U.S.), 21Shares (Europe), Franklin Templeton (Ireland), and REX Shares (U.S.) have pending applications for ETFs tied to various other tokens, including Cardano (ADA), Polkadot (DOT), Hedera (HBAR), and Solana (SOL). This surge in filings reflects a market evolving beyond its initial focus on Bitcoin and Ethereum, with investors increasingly seeking diversified exposure to the foundational technologies of decentralized finance and broader blockchain adoption.
Chainlink’s Role in Decentralized Finance
Chainlink operates as a decentralized oracle network, playing a critical role in bridging the gap between blockchain-based smart contracts and real-world data and events. This capability is essential for the functionality and security of decentralized finance (DeFi) applications, which rely on accurate, tamper-proof external information—such as asset prices, weather data, or election results—to execute smart contract agreements. The native LINK token serves multiple functions within the ecosystem, primarily used to compensate node operators for their services and to secure the network through staking mechanisms. Furthermore, Chainlink recently established a LINK strategic reserve, funded by on-chain and off-chain income, to support its long-term growth and stability initiatives.
By offering a spot Chainlink ETF, Grayscale aims to provide a streamlined investment channel for a broader spectrum of investors, from large institutions to individual retail traders. This approach removes the technical barriers associated with directly acquiring, holding, and securing digital assets. The current wave of crypto ETF filings at the SEC coincides with a period where the Trump administration has signaled a potentially more favorable regulatory posture toward digital assets compared to the preceding administration. This shifting political and regulatory environment could serve as a positive catalyst, potentially facilitating the approval of a wider array of digital asset products beyond the established Bitcoin and Ethereum ETFs.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.