Grayscale Seeks SEC Approval for Chainlink ETF as LINK Price Recovers

Grayscale has submitted an application to the U.S. Securities and Exchange Commission for the Chainlink ETF.

Grayscale is seeking the SEC’s approval to convert its Chainlink Trust(LINK) into an ETF, which, according to the filing, will list and trade on the New York Stock Exchange(NYSE) Arca.

The asset manager is confident that the shares of its LINK ETF could qualify to list and trade on the NYSE if the SEC approves the proposed Generic Listing Standards, which would eliminate the need for a 19b-4 filing.

Although the firm has already prepared a prospectus for its Chainlink ETF, it plans to wait until the SEC either approves the new crypto ETF rules or decides the approval isn’t necessary before making the registration effective.

After Bitwise, Grayscale is the second company to apply for a Chainlink ETF under the 33 Act, while Tuttle had earlier applied for a 2X leveraged ETF under the 40 Act.

Grayscale Unveils Details of Chainlink ETF ‘GLINK’

Grayscale plans to list the Chainlink ETF on NYSE Arca under the ticker ‘GLINK’, pending SEC approval. The fund will hold LINK and give institutional investors access to the token. Grayscale appointed the Bank of New York Mellon as administrator and chose Coinbase to serve as prime broker and custodian.

Grayscale also plans to offer in-kind creation and redemption for the fund, which the SEC is likely to permit, considering its earlier approval for Bitcoin ETFS.

In addition, the firm may engage in staking activities, which the commission declared are not securities and could be permitted once the conditions are met.

Following Grayscale’s ETF application to the SEC, LINK price surged by 3% and is now trading around $23, according to  TradingView.