Chainlink would have its first staked ETF
Grayscale, a digital asset management firm, filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) on Sept. 5 to launch the first staked Chainlink (LINK)-based exchange-traded fund (ETF).
Grayscale’s proposal, which was made public on Monday, is to convert its already existing investment fund, Chainlink Trust, into an ETF that offers direct exposure to the price of LINK, the cryptocurrency pegged to the decentralized oracle platform Chainlink.
This fund is currently traded on the OTC (“over the counter“) market as a private investment vehicle. If approved, LINK will be able to reach the main brokers in the United States, offering greater liquidity and access to institutional and retail investors.
According to the form, the ETF would be listed on the NYSE Arca stock exchange under the ticker GLNK. In addition, it is indicated that the Coinbase exchange will act as a preferred broker for the execution and custody of LINK.
Importantly, the ETF could allocate part of its LINK assets to staking if tax and regulatory conditions are met, allowing investors to generate additional income through this mechanism.
Staking would be done with third-party providers, while assets remain in custody, and rewards could be held, sold, or distributed. It should be clarified that, if approved, it would be the first product of its kind to include this mechanism.
After the presentation of the document, the price of LINK reacted to the upside and went from $22.24 to $23.18, which represents a daily increase of 4%, as seen in the chart below.
As reported by CriptoNoticias, Grayscale has already implemented this strategy of converting its funds into ETFs before, both with its bitcoin products, such as the Grayscale Bitcoin Trust (GBTC) and the Grayscale Bitcoin Mini Trust ETF (BTC), and with ether products, including the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH).
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