Grayscale Seeks SEC Approval for Chainlink Staking ETF

Grayscale aims to transform its $30 million Chainlink Trust into a spot ETF, potentially featuring staking, with plans to list on NYSE Arca as GLNK. This conversion, the first of its kind for LINK, may impact institutional flows and DeFi protocols.

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Grayscale Investments has filed with the SEC to convert its $30 million Chainlink Trust into a spot ETF, intending to list on NYSE Arca.

Importance of the Move

Grayscale’s move to convert its Chainlink Trust into a staking ETF is noteworthy for its potential to set a regulated precedent, while the market immediately responded with a positive price uptick for LINK.

With Grayscale Investments leading the initiative, Michael Sonnenshein is at the helm as CEO. The company’s SEC filing for Chainlink Trust conversion into an ETF involves $30 million in LINK holdings. The proposed fund may allow staking features if approved.

The ETF seeks to offer share creation and redemption options, possibly including both cash and in-kind LINK transfers. If regulatory hurdles are cleared, the ETF might permit the staking of LINK. The potential listing on NYSE Arca could enhance institutional crypto adoption.

Stakeholder Involvement

Stakeholders include Coinbase Custody for asset management and BNY Mellon for fund administration. A 3% hike in LINK’s price was observed after the announcement, signaling market optimism.

Unfortunately, without specific quotes from the key players involved, there are no excerpts to provide. It would be beneficial to keep checking for future updates, as financial filings often prompt subsequent statements from company leadership or related stakeholders.

Regulatory approval would set a new standard for integrated staking in crypto ETFs.

The decision could influence the broader crypto landscape, especially if other Ethereum or Bitcoin products gain similar features. Grayscale’s filing mirrors prior crypto ETF approvals, although the integration of staking is new.

In broader terms, should the ETF gain approval, it could encourage further institutional interest in crypto assets, drawing more capital into the ecosystem and impacting on-chain statistics and staking dynamics. Stakeholders anticipate regulatory clarity on staking income’s eligibility within such structures.