The launch of Bitwise’s Chainlink exchange-traded fund (ETF) is gaining momentum, as it has been officially added to the Depository Trust & Clearing Corporation (DTCC) registry, sporting the ticker symbol CLNK.

Marked as both pre-launch and active, this listing signals that the necessary preparations are in place for a swift introduction, pending the green light from the U.S. Securities and Exchange Commission (SEC).

Positive Implications of DTCC Listing for Chainlink ETF

Although a DTCC listing does not assure regulatory approval, it often precedes successful clearance. This ETF intends to track Chainlink (LINK), which serves as the core asset powering the vital decentralized oracle network that bridges smart contracts with real-world data.

This step marks a significant achievement for Bitwise, one of the top crypto asset managers in the U.S., which submitted its Form S-1 to the SEC in August—following up with Form 8-A as the concluding phase before the ETF can trade publicly.

This groundbreaking progress occurs during a lengthy U.S. government shutdown, which has delayed many crypto ETF applications. However, renewed hope arises as the Senate advances a bill to reopen the government, potentially speeding up ETF application reviews.

Chainlink’s Growing Institutional Presence

Should it receive final approval, the Bitwise Chainlink ETF would represent the first U.S. offering giving institutional investors access to a decentralized oracle network, essential for the infrastructure of decentralized finance (DeFi).

Chainlink’s technology supplies secure, real-time data to smart contracts, enabling efficient automation for payments, lending, and asset management within various blockchain environments.

Market experts suggest that this ETF could broaden investor participation in LINK while confirming Chainlink’s role as a foundational element of Web3 innovation.

This initiative is part of Bitwise’s expanding collection of altcoin ETFs, which also includes funds that cover Solana, XRP, Dogecoin, and Aptos. Simultaneously, competing firms like Grayscale are proposing similar Chainlink ETFs that may feature staking components but risk facing additional regulatory scrutiny.

Market Sentiments and Future Prospects

While the positive regulatory signs are encouraging, LINK prices saw a slight decline of 2%, settling around $15.75 after struggling to remain above the $17.40 resistance threshold. Analysts attribute this dip to the overall weakness in the crypto market and significant sell-offs in derivatives.

Nonetheless, industry analysts view the DTCC listing as a crucial indicator of the evolving infrastructure supporting crypto-centered financial products.

Once the U.S. government fully reopens and the SEC resumes its usual operations, the Bitwise Chainlink ETF (CLNK) could pioneer a fresh wave of altcoin ETFs in the U.S. market. This move stands to bolster the increasing institutional interest in blockchain-based assets and bring DeFi innovations closer to mainstream financial markets.

Cover photo credit goes to ChatGPT, with LINKUSD pricing data from Tradingview.