Chainlink (LINK) saw a rebound of nearly 5% on Tuesday after Bitwise submitted a filing for the first-ever spot Chainlink ETF. The altcoin climbed from an intraday low of $22.94 to around $23.96, supported by renewed optimism in the market. Despite still trading about 1.9% lower over the past 24 hours, the filing has sparked bullish sentiment.
The proposed Bitwise Chainlink ETF, registered under the 1933 Securities Act, would give investors direct exposure to spot LINK. According to the S-1 filing with the U.S. Securities and Exchange Commission (SEC), Coinbase Custody Trust Company will serve as custodian for the fund’s LINK holdings. The ETF will allow both in-kind and cash-based creation and redemption but will not engage in active trading. 
For the ETF to move forward, an exchange must submit a 19b-4 filing to enable listing and trading of the fund’s shares. This will trigger the SEC’s review process, which involves initial checks, public comment, potential amendments, and a final ruling.
Bloomberg analyst Eric Balchunas noted that this is the first true spot ETF proposal for Chainlink. While Tuttle Capital previously filed for a 2x leveraged LINK ETF under the 1940 Act, the Bitwise filing marks a more direct institutional entry point.
The significance of this ETF lies in its ability to legitimize institutional demand for Chainlink. If approved, it could attract investments from pension funds, hedge funds, and other large players, potentially increasing LINK’s value. Chainlink’s own reserve, which recently surpassed 150,770 LINK, further strengthens its ecosystem.
Additionally, Chainlink’s growing list of partnerships enhances its role in the DeFi sector. This includes a recent collaboration with Japan’s SBI Group, which will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to support tokenized real-world assets and cross-chain operations. Such developments reinforce Chainlink’s position as a leading provider of secure price oracles and infrastructure for decentralized finance.
