Grayscale Investments has taken a major step toward expanding its crypto offerings. The firm has officially filed for a Chainlink exchange-traded fund (ETF), making it the second asset manager to pursue such a product.
The move comes as demand for token-based ETFs grows and institutional players look to capture investor interest in decentralized finance infrastructure. With this filing, Grayscale signals its intent to bring Chainlink’s native token, LINK, to mainstream financial markets.
Filing Details
On September 5, 2025, Grayscale submitted its registration for the Grayscale Chainlink Trust. This product was originally set up back in December 2020, but the new filing seeks approval to transform it into an ETF. Once approved, it will trade under the ticker GLNK on NYSE Arca.
The firm’s goal is simple: allow investors to gain exposure to LINK without holding the token directly. Each ETF share will represent a fraction of the Trust’s LINK holdings. This structure mirrors the setup of its earlier products, like the Grayscale Bitcoin Trust.
Partners in Place
The filing names several well-known institutions as service providers. Coinbase Custody Trust Company will serve as custodian, safeguarding the LINK assets. The Bank of New York Mellon will act as administrator and transfer agent. Coinbase, meanwhile, is listed as the prime broker.
These partnerships show how Grayscale is leaning on established players to bring confidence and credibility to the ETF structure. The inclusion of traditional firms like BNY Mellon could also appeal to risk-conscious investors who demand trusted oversight.
Creation and Redemption
One of the ETF’s core features is its creation-and-redemption process. Authorized participants will be able to create or redeem shares in large blocks, known as “baskets,” by delivering or receiving LINK. Each basket is set at 10,000 shares.
This mechanism plays a critical role. It allows arbitrage between the ETF’s market price and its net asset value (NAV). If the ETF trades at a premium, participants can deliver LINK to create new shares, selling them for profit and pushing the price down. If it trades at a discount, the opposite occurs. This system helps keep the ETF price aligned with the actual value of its holdings.
Fee Structure
The filing outlines the sponsor’s annual fee of 2.5%, payable in LINK. Grayscale has also committed to covering most operating costs up to $600,000 per year. However, the Trust itself will be responsible for extraordinary expenses, such as unexpected legal or tax bills.
That caveat matters. If such expenses arise, the Trust may be forced to sell LINK at unfavorable market conditions. Investors should note this risk when considering long-term exposure.
No Staking, For Now
Chainlink introduced staking to secure its network and reward token holders. Yet the Trust currently does not meet the requirements to stake LINK. This means investors in the ETF will not benefit from staking rewards.
For now, price performance remains the only driver of potential returns. While this limits upside compared to direct LINK ownership, it also simplifies the product for regulatory approval and investor adoption.
Grayscale’s Strategic Push
Grayscale has long positioned itself as a bridge between traditional finance and crypto. The firm already manages several single-asset trusts, as well as diversified products. By adding Chainlink to its lineup of ETF filings, it underscores LINK’s growing role in decentralized finance infrastructure.
Chainlink’s technology powers decentralized oracles, which feed real-world data to blockchain networks. This service underpins a wide range of applications, from decentralized exchanges to lending protocols. For institutions, exposure to LINK represents exposure to the infrastructure supporting Web3 development.
Industry Context
The filing also highlights the race among asset managers to launch token-based ETFs. Earlier this year, VanEck became the first firm to seek approval for a Chainlink ETF. Grayscale’s move makes it the second entrant, intensifying competition in this niche market.
While regulators have shown caution around spot crypto ETFs, the eventual approval of Bitcoin and Ethereum products has opened the door for others. Chainlink’s inclusion in these discussions reflects both its market relevance and institutional demand.
Grayscale Chainlink ETF Risks and Considerations
Like all crypto-related products, the Grayscale Chainlink ETF comes with risks. The volatility of LINK itself poses challenges. Fees, custody, and regulatory hurdles add further complexity. Investors must also accept that the Trust does not generate yield through staking, limiting its comparative advantages.
Still, the ETF lowers barriers to entry. It removes the need for wallets, exchanges, or direct token custody. For many investors, that convenience outweighs the limitations.
If approved, the Grayscale Chainlink Trust ETF would trade under the ticker GLNK on NYSE Arca. That listing would represent another step in crypto’s integration with mainstream finance. It would also give institutional investors a regulated way to access one of the most widely used tokens in decentralized infrastructure.
For Grayscale, success here would cement its role as a leader in crypto investment products. For Chainlink, it would mark another milestone in its journey from oracle provider to a cornerstone of the broader blockchain economy.
As the ETF race heats up, investors and industry watchers will be paying close attention to regulatory signals. Whether approval comes quickly or not, one thing is clear: traditional finance continues to move closer to digital assets.
Grayscale’s filing for a Chainlink ETF highlights the growing demand for institutional-grade crypto exposure. By structuring the product with trusted partners and clear mechanisms, the firm positions itself as a serious contender in the ETF market.
The decision to file also validates Chainlink’s importance within decentralized finance. While risks remain, the move represents another step in bringing crypto assets into regulated financial markets.
For investors, the Grayscale Chainlink Trust ETF could soon offer a new way to participate in the growth of decentralized infrastructure, without ever holding LINK directly.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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