- Chainlink (LINK) rebounded 5% from an intraday low of $22.94 on August 26 after asset manager Bitwise filed for the first-ever spot Chainlink ETF with the U.S. SEC.
- If approved, the ETF could open LINK to institutional investors, potentially driving long-term demand and strengthening its role in the wider DeFi ecosystem.
Earlier this week, LINK’s price recorded a significant uptrend following Bitwise Asset Management filing for a first spot Chainlink ETF with the U.S. Securities and Exchange Commission (SEC). The price action which occurred on Tuesday was a rebound from its previous retracement to $22.94 before its recent jump by 5% to take the price to $23.96.
Although still down 1.9% on the day, the filing has triggered optimism among traders and institutional players alike. For many, the move signals a new start for Chainlink, one that could change its role in digital finance and provide a robust foundation for price stability.
Why This Filing Matters
According to Bitwise’s S-1 filing, the proposed ETF will align with Coinbase Custody Trust Company to protect the underlying LINK tokens. That detail is important because it promotes transparency, security and institutional upgrades which are three key features whales look out for before investing heavily on projects.
Unlike speculative trading products, the ETF is structured for both in-kind and cash-based creation and redemption, without active trading provisions. This creates a regulated entry point for pension funds, hedge funds, and other institutional actors who previously could not directly access LINK.
Bloomberg analyst Eric Balchunas pointed out that while Tuttle Capital already proposed a leveraged 2x LINK ETF, Bitwise’s approach represents the first “true blue spot ETF” for Chainlink.
Pretty sure it’s the first one for chainlink, at least for a true blue spot etf as Tuttle did for a 2x
chainlink under 40 act pic.twitter.com/jgmJH2Rw1D— Eric Balchunas (@EricBalchunas) August 26, 2025
If the SEC approves the filing, the process would then hinge on a 19b-4 exchange submission to officially list and trade the shares. That review process typically involves an initial review, publication for public comments, and possible amendments before a final decision.
A Boost for Chainlink’s Role in DeFi
The recent filing comes at a time when Chainlink’s utility in decentralized finance is growing at a fast rate. As discussed in our previous post, the project’s onchain Reserve lifted its holdings to more than 150,000 LINK, worth nearly $3.8 million.
On the other hand, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has been adopted by top investors such as Japan’s SBI Group to back tokenized real-world assets. These moves highlights Chainlink’s growing relevance as significant infrastructure for DeFi, not just a speculative asset
If approved, the Bitwise ETF would not only validate demand from Wall Street but also amplify Chainlink’s positioning in global markets. By narrowing the between blockchain ecosystems and traditional finance, it is capable of turning LINK into one of the most sought after digital assets that can be adopted into institutional portfolios. For investors, this could mean greater stability in trading and a renewed price momentum driven by long-term capital inflows.
At press time, LINK was trading at $24.08, a significant spike by 3.9% in the last 24 hours. Trading volume also dipped by 6% as it drops to $1,648,042,500.
