Grayscale files to convert $30 million Chainlink trust into staking ETF on NYSE Arca

By staking tokens, Grayscale seeks to offer Chainlink ETF investors a balanced risk-reward model.

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Grayscale Investments has filed fresh paperwork with the US Securities and Exchange Commission (SEC), seeking to convert its Chainlink Trust into an exchange-traded fund ETF).

The filing, submitted Sept. 5, would allow the $28.7 million vehicle to trade on NYSE Arca under the ticker GLNK once approved.

The company said the shift is designed to give investors regulated access to Chainlink’s price performance without the need to manage or secure the tokens directly.

Essentially, Grayscale aims to lower custody risks while offering exposure through traditional markets by using an ETF structure.

Before the ETF can launch, Grayscale must file a corresponding 19b-4 submission, a procedural step that requires SEC approval.

Grayscale’s Chainlink ETF structure

Grayscale stated that its proposed ETF could allow some of the tokens held in the trust to be staked.

In that scenario, the asset management firm said it would rely on third-party providers to keep tokens in custodian wallets.

The firm emphasized that the fund will use a cash-based creation and redemption model.

While the SEC has recently approved in-kind standards for other digital asset ETFs, Grayscale noted that it remains uncertain how quickly market participants will adapt.

The company also indicated that NYSE Arca could eventually seek regulatory clearance to update its listing rules to accommodate in-kind transactions.

According to the filing, CSC Delaware Trust Company will serve as trustee, while The Bank of New York Mellon will act as both transfer agent and administrator. Continental Stock Transfer & Trust Company will function as the co-transfer agent, and Coinbase will provide prime brokerage and custody services.

Crypto ETFs

The application marks another attempt by Grayscale to broaden investor access to cryptocurrencies beyond Bitcoin and Ethereum.

Its current applications already cover multiple assets, including Solana and XRP, reflecting growing institutional interest in altcoins.

Market analysts argue that these applications reflect rising institutional interest in altcoins.

Nate Geraci, president of Nova Dius Wealth, pointed out that major exchanges are collaborating with the SEC on standard frameworks for spot crypto ETF listings.

He said such rules could be finalized by October, potentially clearing the way for multiple altcoin products to enter the market.

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