Grayscale is preparing to convert its Chainlink trust into the first U.S. spot Chainlink ETF, a development that could mark a major milestone for regulated LINK exposure.
Key Takeaways:
- Grayscale is converting its existing Chainlink trust into a spot LINK ETF, making it the first one to enter the U.S. market.
- Chainlink (LINK) market saw a noticeable price decline, but volatility points to broader market decline rather than the ETF launch.
- A successful conversion could expand regulated access to smart contract infrastructure exposure and strengthen Chainlink’s presence in institutional crypto investment strategies.
Industry analysts and ETF commentators reported that Grayscale is now preparing to convert its Chainlink private trust into a U.S. spot Chainlink ETF, according to monitoring from ETF-watchers on X. The update surfaced after multiple ETF analysts highlighted unusual activity in Grayscale’s product pipeline and signaled that a LINK ETF could debut as early as this week.
The move follows Grayscale’s strategy of upgrading existing trust products into exchange-traded funds, similar to its previous transition from the Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF earlier in 2024. That precedent has given analysts confidence that the company could push through additional conversions efficiently once it secures the necessary regulatory and listing approvals.
If the conversion is finalized, the new vehicle will become the first spot ETF in the United States offering direct exposure to Chainlink’s LINK token. The launch would also place LINK among a growing group of altcoins entering the ETF landscape, a trend that has accelerated as issuers look to expand beyond Bitcoin- and Ethereum-only offerings.
LINK Slides Amid ETF Speculation, Traders Eye Volatility
At the time of writing (9:15AM UTC), TradingView’s live data shows Chainlink (LINK) trades around $12.14, showing significant price declines of approximately 7.0% in the last 24 hours, reflecting a sell‑off despite speculation building around a potential spot ETF launch. CoinGecko’s real-time market data emphasized LINK’s 24-hour volatility, as it reached intraday highs around $13.41 and touched intraday lows near $12.06.
Meanwhile, the 24‑hour trading volume has surged, indicating that selling pressure is accompanied by active turnover, which is a potential sign that investors are repositioning ahead of any official ETF news.
Analysts Weigh In on ETF Momentum
ETF specialists, including Nate Geraci and commentators from Bloomberg Intelligence, have been forecasting heightened activity across the crypto ETF sector. Their posts and discussions have contributed to growing expectations surrounding altcoin ETF approvals, especially as regulators appear more open to allowing new products when issuers can demonstrate robust surveillance-sharing, custody, and compliance standards.
Grayscale’s reputation for pursuing trust conversions has further fueled speculation. Analysts note that the company’s infrastructure, scale, and prior experience with ETF upgrades position it well to spearhead new offerings. If the Chainlink conversion moves forward smoothly, the firm may also explore converting other altcoin trusts depending on regulatory signals and market appetite.
What’s Next for Chainlink and Investors
Investors and traders will be watching closely for official filings, exchange listings, or SEC updates that could confirm the ETF conversion. Any announcement could trigger volatility, especially in LINK’s short-term price. If launched, the U.S. spot Chainlink ETF would provide regulated access to smart contract exposure, potentially boosting demand and attracting institutional and retail investors. Early fund flows will indicate whether the product gains traction or serves mainly as a market milestone.
Summary
Grayscale is reportedly preparing to convert its Chainlink trust into the first U.S. spot Chainlink ETF, a move that could expand regulated access to LINK, prompt short-term volatility, and influence institutional interest in smart contract infrastructure exposure.
