Grayscale prepares first U.S. spot Chainlink ETF as crypto fund competition accelerates

U.S. investors are poised to gain new regulated access to Chainlink ETF exposure this week as Grayscale reshapes one of its existing crypto products.

Grayscale converts private Chainlink trust into public ETF

Grayscale is preparing to launch the first-ever U.S. spot Chainlink ETF in the coming days, converting its long-running private Chainlink trust into a publicly listed fund. The move will give investors direct exposure to Chainlink (LINK) through a regulated vehicle traded on traditional exchanges.

The new ETF will track the spot price of LINK and, where regulations permit, may also capture staking-related returns. Grayscale has operated its Chainlink trust since late 2020. However, the conversion into an exchange-traded fund is designed to open the product to a broader pool of both retail and institutional investors.

Nate Geraci, co-founder of the ETF Institute, underscored the significance of the conversion. He noted that it represents a major step forward for crypto investment products in the United States. Moreover, the expected timing of the listing aligns with Bloomberg Intelligence forecasts that anticipate regulatory clearance this week.

Rising competition from Bitwise and other asset managers

Grayscale’s strategy places the firm in direct competition with Bitwise, which is also preparing a dedicated Chainlink fund. Both asset managers are racing to capture demand from investors seeking transparent, regulated exposure to the oracle-focused LINK token. That said, Grayscale’s earlier entry with a private trust gives it an established track record to leverage.

Market observers expect this new wave of single-asset crypto funds to broaden the menu of regulated products available to U.S. portfolios. In particular, the battle between Grayscale and Bitwise highlights how established crypto managers are positioning themselves as demand for specialized digital asset exposure grows.

Analysts believe that the spot Chainlink ETF approval window reflects a broader shift among U.S. regulators. Over the past year, Washington has implemented several adjustments that have gradually opened the door to more crypto-linked exchange-traded products. Moreover, these developments signal a measured but growing acceptance of digital assets within the traditional financial system.

Altcoin ETFs gain traction with mainstream investors

The latest Chainlink-focused fund is part of a wider boom in altcoin-themed ETFs. In recent months, products tied to assets such as Solana, XRP, and Dogecoin have listed and quickly captured investor attention. These launches suggest that interest is expanding well beyond bitcoin and ether.

One example is the Canary Capital XRP ETF (XRPC), which recorded $245 million of inflows on its first trading day. Similarly, the Bitwise Solana Staking ETF (BSOL) raised more than $660 million within just a few weeks of listing. Together, these figures illustrate robust appetite for altcoin-focused exchange-traded products.

Moreover, the strong debut of these funds has reinforced expectations that investor interest in alternative layer-1 and infrastructure tokens will keep rising. For portfolio managers, such ETFs offer a familiar wrapper for accessing high-growth segments of the digital asset market without the operational complexity of direct token custody.

Chainlink ETF launch points to institutionalization of crypto markets

Within this context, the upcoming chainlink etf launch by Grayscale is seen as a further step toward the institutionalization of crypto markets. By converting its private trust into a listed ETF, the firm is bridging the gap between traditional finance and decentralized oracle infrastructure.

The new product is expected to appeal to institutions that require regulated instruments, audited reporting, and exchange-based liquidity. However, it may also attract sophisticated retail investors who prefer exposure via brokerage accounts rather than direct token purchases on crypto exchanges.

Industry analysts argue that the growth of these niche ETFs is creating a feedback loop. As more regulated products appear, institutional comfort with blockchain-based assets increases, which in turn encourages further innovation from asset managers and index providers.

Outlook for crypto-linked ETFs after 2024

Looking ahead, commentators anticipate a continued expansion of crypto ETF offerings in the United States after 2024. Regulatory bodies have so far taken a cautious but increasingly structured approach to approving products tied to digital assets. That said, each successful launch strengthens the precedent for additional applications.

The expected debut of Grayscale’s Chainlink vehicle, alongside competing efforts from firms like Bitwise, suggests that single-asset and thematic crypto ETFs will become a more permanent fixture of the fund landscape. Moreover, the emphasis on regulated access, potential staking rewards, and clear pricing benchmarks may help these instruments gain further traction among conservative allocators.

In summary, the arrival of a U.S. spot Chainlink ETF marks a notable milestone in the evolution of crypto investment products, reinforcing the trend toward mainstream, regulated exposure to blockchain-based assets for both retail and institutional investors.