Grayscale Debuts Chainlink ETF: A First for US Markets
GLNK ETF offers investors direct exposure to Chainlink's oracle network via NYSE Arca.
Grayscale Investments has launched the Grayscale Chainlink Trust ETF (GLNK) on the NYSE Arca. This marks the first spot Chainlink exchange-traded product available in the United States.
What is GLNK?
The GLNK ETF holds Chainlink's native cryptocurrency, LINK, as its sole asset. This new ETF emerged after converting from a private trust to an ETF structure, outlined in an amended S-1 filing last month.
Why Chainlink?
Grayscale chose Chainlink because of its established oracle network, a crucial component of blockchain infrastructure. The company has supported Chainlink since 2021 through its private fund.
Chainlink's Role
Chainlink is an oracle network that connects smart contracts on any blockchain to real-world data, events, and off-chain computation. This network synchronizes on-chain and off-chain information.
ETF Approval
The SEC's new listing standards played a key role in enabling Grayscale to launch GLNK. The SEC's move triggered a 20-day window, at the end of which the product became automatically effective.
Trading Performance
GLNK closed its first day at $11.89, up 5.8%, with after-hours trading pushing it to approximately $12, according to Yahoo Finance. Volume reached 1.17 million shares, signaling significant early investor interest.
Key Takeaways:
- First of its kind: GLNK is the first US-based Chainlink ETF.
- Direct Exposure: Investors gain direct exposure to LINK.
- Positive Reception: The ETF saw strong trading volume on its debut.
Investment Considerations
As always, investors should consider their risk tolerance and investment timeline before making allocation decisions. Bitcoin remains a volatile asset despite increasing institutional adoption.
This article is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor.
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