Key Insights
- •GLNK provides investors with direct LINK exposure through a familiar ETF wrapper on NYSE Arca.
- •Chainlink's expanding role in DeFi and tokenization is driving demand for regulated access.
- •Grayscale is waiving GLNK fees for the first three months or up to $1 billion in managed assets.
Grayscale Investments has launched its Chainlink ETF, trading under the ticker GLNK, on the NYSE Arca. This marks the first exchange-traded product in the U.S. linked to Chainlink (LINK), offering investors exposure to the token through traditional brokerage platforms.
GLNK provides spot exposure to LINK, the token that powers Chainlink’s decentralized oracle network. The fund is structured as an exchange-traded product, distinct from a traditional 1940 Act ETF. Coinbase will serve as the custodian for the underlying LINK held within the fund. Grayscale has implemented a 0% management fee for the initial three months or until the fund reaches $1 billion in assets.
GLNK Offers Direct LINK Exposure in ETF Format
The ETF directly holds LINK and is designed to mirror the token’s market value through a subscription and redemption model. This structure enables GLNK to track net asset value more closely compared to its earlier over-the-counter version.
Inkoo Kang, Senior Vice President of ETFs at Grayscale, stated, “With GLNK, investors can gain exposure to this foundational infrastructure in the familiar ETP wrapper.” The product is intended for both institutional and retail investors seeking access to LINK via a regulated vehicle.
Chainlink’s Role in Blockchain Use Cases
Chainlink offers decentralized data feeds essential for smart contracts across various blockchain networks. Its applications span areas such as decentralized finance (DeFi), insurance, gaming, and asset tokenization. Furthermore, the network facilitates the connection of legacy systems to public and private chains, supporting cross-chain communication.
Grayscale highlighted Chainlink’s growing importance in blockchain infrastructure as a primary driver for the fund's creation. The company anticipates that Chainlink's services will be instrumental in supporting the next wave of growth within tokenized markets.
Fund Structure and Investor Considerations
GLNK was initially introduced as a private placement in 2021 and subsequently began trading on OTC Markets. Its transition to NYSE Arca signifies its entry into a broader investment market, enhancing its visibility.
Grayscale has confirmed that the product is not registered under the Investment Company Act of 1940. The firm stated, “An investment in GLNK is not suitable for all investors,” and cautioned about the potential for complete capital loss. GLNK offers exposure to LINK but does not constitute a direct purchase of the token.