Chainlink Set for Wall Street Debut? Bitwise ETF DTCC Listing Could Trigger LINK Rally
SEC Review Pending: Could Bitwise Chainlink ETF Spark LINK Price Surge?
Investors and crypto enthusiasts are closely monitoring developments surrounding the proposed Bitwise Chainlink Exchange-Traded Fund (ETF), which has recently appeared on the Depository Trust & Clearing Corporation (DTCC) eligibility list. This move has reignited discussions about potential institutional adoption of Chainlink (LINK) and the implications for its market price. However, experts caution that the listing is merely a procedural step and does not guarantee immediate approval from the U.S. Securities and Exchange Commission (SEC).
Understanding the DTCC Milestone
The DTCC, responsible for clearing and settling trades in U.S. securities markets, provides eligibility listings for funds preparing to go live. The appearance of the Bitwise Chainlink ETF, trading under the ticker CLNK, indicates that the fund has cleared important operational steps, including the preparation of trading documentation and clearing arrangements. While this is an important signal for investors, it is critical to note that SEC approval is still required before the fund can officially launch and begin trading on a regulated exchange.
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Market analysts have pointed out that such procedural listings are common in the ETF approval process. Eric Balchunas, senior ETF analyst at Bloomberg, noted, “A DTCC eligibility listing is a milestone, but it is not a green light. It merely confirms that the fund is ready for the next regulatory review steps.”
A Brief History of Bitwise’s Chainlink ETF Effort
Bitwise Asset Management, one of the largest cryptocurrency-focused asset managers, initially filed for the Chainlink ETF in August 2025. The proposed fund is designed to give investors regulated exposure to LINK without the need to purchase the cryptocurrency directly. Unlike traditional holdings, the fund would be backed by actual LINK tokens, which are tracked using the CME CF Chainlink-Dollar Reference Rate to ensure transparency and price accuracy.
Custody of the underlying LINK tokens is planned to be managed by Coinbase Custody Trust, which provides cold storage and insurance protections. This framework is intended to address concerns about security, token accessibility, and asset protection, which have historically been obstacles for institutional investors entering the crypto market.
This is not Bitwise’s first foray into crypto ETFs. The firm has previously launched and managed several notable funds, including Bitcoin and Ethereum ETFs, making it a recognized player in bridging the gap between traditional finance and the cryptocurrency market. The DTCC eligibility listing is viewed as the latest step in Bitwise’s strategic push to integrate Chainlink into mainstream financial channels.
Market Reaction: Why LINK Price Fell Despite Positive Developments
Typically, news of a potential ETF approval would be expected to boost the underlying asset’s price. Yet, LINK has experienced a decline of approximately 7.5% over the last 24 hours, trading near $15.37 at the time of writing. Market experts cite several contributing factors for the temporary drop.
First, the initial excitement surrounding the ETF filing quickly transitioned into uncertainty. Traders anticipating immediate SEC approval reacted by selling off positions when the formal green light did not materialize. Second, technical indicators point to weaknesses in the LINK market. The cryptocurrency recently slipped below its 30-day moving average and key support levels, signaling that short-term selling pressure is dominating the market.
Currently, the immediate support for LINK is observed near $15.20. Analysts suggest that a rebound above the $15.76 level could pave the way toward $17, while a failure to hold support may result in a decline toward $13.80. These price movements underscore the volatile nature of cryptocurrencies during periods of regulatory anticipation.
The Regulatory Context: SEC Approval and Institutional Implications
The SEC has yet to formally approve the Bitwise Chainlink ETF. Until the commission grants authorization, the ETF cannot legally trade on U.S. exchanges. However, many industry observers believe that regulatory review is advancing and that a resolution may be forthcoming in the near term, particularly as the U.S. government’s backlog of ETF filings is expected to be cleared.
Approval of the CLNK ETF could significantly reshape the market for Chainlink. Institutional investors, who often require regulated and insured exposure to digital assets, would gain a compliant and transparent channel to purchase LINK. This influx of institutional capital could provide substantial upward momentum for the cryptocurrency.
Historically, the approval of crypto ETFs has been correlated with positive price movement. For instance, the launch of Bitcoin and Ethereum ETFs opened the market to new pools of institutional liquidity, driving notable appreciation in the underlying assets. Analysts anticipate a similar scenario for Chainlink if and when the ETF is approved.
Two Potential Price Scenarios for LINK
Market strategists outline two primary scenarios depending on SEC action and broader market dynamics.
Scenario One: Approval and Launch
If the SEC approves the ETF and the fund becomes listed on exchanges, the initial reaction is likely to be bullish. Short-term expectations suggest LINK could test the $2.80–$3.00 range, while a sustained breakout could push prices toward $3.20. Medium-term trends may see LINK advancing toward $3.50–$4.00 as institutional adoption strengthens. Over the longer term, with robust capital inflows, LINK could potentially reach $5.00–$6.00 by mid-2026, positioning it as a mainstream digital asset for diversified portfolios.
Scenario Two: Last-Minute Delay
Conversely, if regulatory delays occur due to SEC reviews or technical factors in U.S. securities markets, short-term volatility is likely. Prices could fall toward $2.20 support, and in the event of an aggressive sell-off, LINK might test $2.00. Analysts caution, however, that such setbacks are often temporary and may provide an opportunity for long-term investors to accumulate positions before a potential rally post-approval.
Final Thoughts: Cautious Optimism for Investors
For investors and LINK holders, the Bitwise Chainlink ETF represents a milestone in the broader adoption of altcoins by mainstream financial markets. While the DTCC eligibility listing confirms progress, the absence of SEC approval means volatility remains a factor in the near term.
Patience, therefore, is advised. Traders and institutional participants may benefit from observing market behavior over the next few weeks as regulatory clarity emerges. Once the ETF is launched, it could act as a catalyst for significant price movement, introducing LINK to a wider range of compliant investment vehicles and opening the door to potentially billions in institutional capital.
As the cryptocurrency ecosystem continues to mature, the CLNK ETF signals growing recognition from Wall Street, reflecting a broader trend of regulatory integration and mainstream adoption. For the first time, Chainlink is not only being valued for its technological capabilities but also for its potential as a financial instrument accessible to professional investors through regulated channels.
The next few weeks will likely be pivotal, determining whether LINK remains in its current consolidation range or begins a new rally fueled by institutional investment and renewed market confidence.
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