The landscape of cryptocurrency exchange-traded funds (ETFs) is becoming increasingly competitive as two prominent digital assets, Chainlink (LINK) and XRP, garner significant attention. Recently, Bitwise Asset Management took a bold step by submitting their proposal to the U.S. Securities and Exchange Commission (SEC) for a Chainlink ETF, aiming to offer investors a new way to engage with this innovative token.
Bitwise Advances With Chainlink ETF Proposal
This new ETF initiative seeks to provide investors direct access to Chainlink (LINK) without the complexities of purchasing it on exchanges. As detailed in the filing, the fund will hold LINK tokens outright, allowing investors a straightforward mechanism to invest. Notably, this will enable them to create shares backed by LINK and redeem those shares for the token or cash.
Given the evolving regulatory environment surrounding crypto ETFs, Bitwise’s application is particularly timely. With the SEC recently allowing in-kind creation and redemption processes for digital asset ETFs, the prospects for Bitwise’s Chainlink ETF appear promising. However, the filing does not yet have an assigned ticker symbol nor a specified exchange for its initial public offering. Bitwise intends to work closely with the SEC and plans to list the fund on a U.S. securities exchange once it receives the necessary approvals. Coinbase Custody Trust Company is set to manage the custody of LINK assets, bolstering investor confidence.
Following the news, Chainlink has experienced positive market reaction, currently trading above $23 with daily gains nearing 5%. Investors are keenly observing the potential for LINK to not only sustain its upward trajectory but also to challenge key price milestones, such as the anticipated breakout to $30.
Chainlink and XRP: A Duel for ETF Dominance
As Chainlink makes strides with its ETF filing, XRP is also positioning itself closely behind in the race. Bitwise has made additional updates to its XRP ETF application, with insights from the SEC’s feedback likely influencing this move. Industry analysts suggest that the timeline for XRP’s approval could align with significant market catalysts projected for October.
If XRP’s ETF journey mimics that of Ethereum’s approval process, we might see an expedited start to trading activity, potentially occurring just weeks post-approval. Conversely, if it follows Bitcoin’s trajectory, approval could mean a remarkably swift initiation of trading, possibly within days rather than months.
Both Chainlink and XRP are under the market’s microscope, as they prepare to enter the regulated investment landscape through their respective ETF avenues. XRP, too, remains resilient in its price levels, sitting around $3.22 after a recent spike to $3.60. The crypto community is now keenly watching how the SEC review progresses, hoping for a favorable resolution that might catalyze another price breakout.
