Wall Street Is Eyeing Chainlink: Bitwise’s ETF Quietly Gets SEC Yes
Bitwise Confirms February Launch for Chainlink ETF After SEC Clearance
New York — Bitwise Asset Management has officially confirmed the launch timeline for its long-anticipated spot Chainlink exchange-traded fund, marking another milestone in the gradual integration of digital assets into traditional financial markets.
The firm disclosed that its Bitwise Chainlink ETF has received regulatory clearance after its registration statement became effective with the U.S. Securities and Exchange Commission. The fund is approved to list on NYSE Arca under the ticker symbol CLNK, completing the final regulatory hurdle required before trading can begin.
However, despite the green light from regulators, Bitwise will not rush the product to market. According to a Form 424B3 prospectus filed with the SEC, the company plans to begin utilizing the registration on February 1, 2026, setting the stage for a February launch rather than an immediate debut.
Auto-Effective Approval Allows Strategic Timing
The ETF received what is known as “auto-effective” status, a regulatory mechanism that enables issuers to finalize operational and logistical preparations before shares begin trading publicly.
Industry analysts say this approach reflects a growing maturity in how crypto-linked investment products are brought to market.
“Auto-effectiveness gives issuers flexibility,” said a digital asset analyst familiar with ETF structuring. “It allows them to align custodial readiness, market liquidity, and investor demand instead of forcing a rushed launch.”
For Bitwise, the timing also coincides with renewed institutional interest in blockchain infrastructure assets rather than speculative tokens, positioning Chainlink as a utility-driven investment narrative.
Second Spot Chainlink ETF in the U.S.
Once trading begins, the Bitwise product will become the second spot ETF in the United States offering direct exposure to Chainlink’s LINK token.
The first mover in this category was Grayscale, which launched its own Chainlink-focused fund in December. The emergence of multiple spot products tied to the same crypto asset is widely viewed as a sign of increasing regulatory comfort with select digital assets beyond Bitcoin and Ethereum.
The ETF structure allows investors to gain price exposure to LINK without managing private keys or interacting with crypto exchanges, making the product particularly attractive to institutions, registered investment advisers, and retirement-focused portfolios.
What the ETF Tracks and How It Works
The Bitwise Chainlink ETF is designed to track the CME CF Chainlink-Dollar Reference Rate (New York Variant), a pricing benchmark developed to meet institutional standards for transparency and reliability.
Under the structure outlined in the prospectus, the ETF will hold actual LINK tokens rather than derivatives, aligning it with the spot ETF framework that regulators have increasingly accepted over the past year.
Bitwise Investment Manager LLC is expected to seed the fund with $2.5 million, equivalent to 100,000 shares priced at $25 each, ensuring initial liquidity once trading begins.
Fees and Temporary Waivers
The fund will carry a 0.34% annual management fee, placing it competitively within the digital asset ETF landscape.
To attract early inflows, Bitwise plans to waive the management fee for the first three months on assets up to $500 million, a strategy commonly used by ETF issuers to gain early traction and improve secondary market liquidity.
Analysts say the fee structure reflects intensifying competition among crypto ETF providers, as firms race to capture market share in a rapidly expanding segment.
Custody and Institutional Safeguards
Custody arrangements remain a central concern for regulators and investors alike, particularly following high-profile crypto failures in previous years.
Bitwise confirmed that Coinbase Custody Trust Company will serve as the digital asset custodian, while BNY Mellon will act as the cash custodian.
The involvement of established financial institutions is expected to bolster investor confidence, reinforcing the ETF’s compliance with traditional market safeguards.
“These custody partnerships are not just operational decisions,” said a senior ETF strategist. “They are credibility signals to institutional investors.”
Staking Not Available at Launch
While the prospectus references Attestant Ltd as a preferred staking service provider, Bitwise clarified that LINK staking will not be enabled at the initial launch of the ETF.
The company noted that it has not yet made a final determination regarding when or whether staking features will be introduced, citing ongoing evaluations related to operational readiness, regulatory interpretation, and market conditions.
Staking has become an increasingly popular feature in crypto investment products, but regulatory ambiguity continues to limit its immediate adoption within U.S.-listed ETFs.
Why Chainlink Matters to Wall Street
Chainlink is widely regarded as one of the most critical pieces of infrastructure in the blockchain ecosystem, providing decentralized oracle services that allow smart contracts to interact with real-world data.
Its technology is used across decentralized finance platforms, tokenized real-world assets, and increasingly within enterprise blockchain applications.
The launch of a second U.S. spot ETF tied to LINK signals that institutional investors are beginning to view blockchain infrastructure tokens as long-term strategic assets rather than speculative trades.
“This is about exposure to the plumbing of the digital economy,” said a blockchain research director. “Chainlink is not a meme asset. It’s infrastructure.”
Market Reaction and Price Action
Despite the regulatory milestone, market reaction has been measured.
At the time of writing, LINK was trading near $13.19, down approximately 3% over the past 24 hours, with trading volume declining nearly 20%, according to market data.
Derivatives indicators also suggest a cautious stance among traders. Futures open interest tied to LINK has fallen to around $632.8 million, pointing to reduced leverage and risk appetite.
Broader macroeconomic factors appear to be influencing sentiment, including the latest U.S. employment data, which has prompted renewed debate over the Federal Reserve’s interest rate trajectory.
Institutional Demand Versus Short-Term Volatility
Historically, the launch of spot crypto ETFs has drawn significant institutional attention, but price appreciation has not always been immediate.
Bitcoin and Ethereum ETFs, for example, experienced periods of volatility and consolidation following their debuts, even as long-term inflows remained strong.
Market participants expect a similar pattern for Chainlink.
“ETFs are not instant price catalysts,” said a portfolio manager at a digital asset fund. “They are distribution channels. The real impact plays out over quarters, not days.”
A Broader Shift in Crypto Regulation
The approval of multiple spot ETFs tied to different crypto assets underscores a broader shift in regulatory posture, with U.S. authorities increasingly focusing on disclosure, custody, and market integrity rather than outright resistance.
For asset managers like Bitwise, the Chainlink ETF represents both a commercial opportunity and a regulatory test case for future products tied to blockchain infrastructure.
As more institutional capital gains regulated access to digital assets, analysts say the line between traditional finance and crypto-native markets continues to blur.
Looking Ahead
With a February launch now firmly on the calendar, attention will turn to early inflows, trading volumes, and how the Bitwise Chainlink ETF performs relative to its competitors.
Whether the product sparks renewed momentum for LINK remains uncertain, but its approval alone marks another step toward mainstream acceptance of crypto-based investment vehicles.
For investors, the launch offers a new way to participate in the growth of blockchain infrastructure through familiar market instruments, without navigating the complexities of direct token ownership.
hokanews.com – Not Just Crypto News. It’s Crypto Culture.