Grayscale Introduces First Spot Chainlink ETF on NYSE Arca

On Tuesday, Grayscale debuted its Grayscale Chainlink Trust ETF (GLNK) on NYSE Arca, marking the inaugural spot Chainlink exchange-traded product to enter the U.S. market. This transition transforms the trust into an ETF that exclusively holds Chainlink’s native cryptocurrency, LINK, following an amended S-1 that outlined the framework for the newly listed product. A Grayscale representative explained to Decrypt that Chainlink was a logical choice for an ETF format, emphasizing the firm's long history of support for the Chainlink oracle network and the trust's operation as a private fund since 2021. The launch positions Grayscale as the pioneer in offering ETF access to blockchain oracles, enabling investors to engage more directly with this vital component of blockchain infrastructure. Chainlink operates an oracle network that connects smart contracts on any blockchain with real-world data and off-chain computations, as noted in GLNK’s prospectus. The network provides the essential infrastructure needed to synchronize on-chain and off-chain information. Grayscale’s introduction of its Chainlink ETF follows a similar trust conversion model used for its DOGE and XRP ETFs, which also began trading on NYSE Arca after completing the necessary procedural requirements. Models that only allow cash transactions require authorized participants to manage a greater portion of buying and selling, as the SEC highlights in its official guidelines. This can lead to wider price fluctuations when a new ETF is initially launched. The SEC’s updated listing standards, approved in September, played a vital role in facilitating the asset manager’s product launch, according to Decrypt. Grayscale noted that it was able to utilize a route outlined by the SEC during the government shutdown to submit its filing for GLNK. Additionally, Grayscale provided Decrypt with an SEC statement detailing how it managed to qualify pending registration statements despite the prolonged shutdown, which affected liquidity across the crypto market. This strategy initiated a 20-day window, after which the product automatically became effective. Regarding early trading conditions, the Grayscale spokesperson mentioned, “So far, trading volume has been very positive,” shortly after the product's launch. On its first day of trading, GLNK closed at $11.89, a 5.8% increase, with after-hours trading pushing it to approximately $12, based on Yahoo Finance data. The volume reached 1.17 million shares, significantly higher than its usual average of around 42,000, reflecting strong initial interest and active price discovery as the ETF transitioned from OTC markets to NYSE Arca. Grayscale reported “enthusiasm from a range of investors,” with secondary market activity mirroring this positive sentiment.