Grayscale files to convert $30 million Chainlink trust into staking ETF on NYSE Arca
John: Hey everyone, I’m John, a veteran writer for our crypto blog where we break down Web3, virtual currencies, and blockchain news in straightforward terms. Today, we’re diving into Grayscale’s recent move to turn their Chainlink Trust into an ETF—think of it as making crypto investing a bit more like traditional stocks. We’ll cover what this means, why it’s happening now, and what to watch for.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about this crypto world. John, what’s the big deal with Chainlink and why would Grayscale want to convert their trust into an ETF?
What is Chainlink?
John: Great question, Lila. Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data, like prices or weather info. Launched in 2017, its native token LINK powers the network by compensating node operators who provide this data securely.
Lila: Oracle network? That sounds like something from a fantasy novel. Can you explain it simply?
John: Absolutely—think of oracles as messengers that fetch off-chain data for blockchain apps, ensuring everything runs smoothly without trusting a single source. For example, a smart contract for insurance might use Chainlink to check if a flight was delayed. (And hey, if only my coffee order had an oracle to predict when it’ll arrive!)
Background on Grayscale and the Chainlink Trust
John: Grayscale Investments is a major player in crypto, known for products that let investors gain exposure to assets like Bitcoin without directly holding them. Their Chainlink Trust, launched on 2021-02-03 according to their official site, allows people to invest in LINK through a security traded over-the-counter. As of now, in 2025, this trust holds about $30 million in assets.
Lila: Over-the-counter? Is that like buying something at a flea market instead of a big store?
John: Spot on analogy! OTC means trading directly between parties, not on a major exchange, which can limit liquidity. In the past, Grayscale has converted trusts like their Bitcoin one into ETFs, with the spot Bitcoin ETF approval happening on 2024-01-10, opening doors for easier access.
Details of the ETF Filing
John: On 2025-09-05, Grayscale filed an S-1 registration statement with the SEC to convert this Chainlink Trust into a spot ETF, as reported by CryptoSlate and CoinDesk. If approved, it would trade on NYSE Arca under the ticker GLNK, providing simplified exposure to LINK with potential staking features to earn rewards.
Lila: Staking? That’s like putting your crypto to work, right? But how does it fit into an ETF?
John: Exactly—staking involves locking up tokens to support the network and earn yields, similar to earning interest on savings. This ETF could include staking if regulators greenlight it, based on recent filings; it’s designed for custody by trusted parties, making it easier for traditional investors. (Imagine staking as your crypto going to the gym to build more muscle—rewards without the sweat!)
Potential Impact on the Market
John: This filing comes amid growing interest in altcoin ETFs, following Ethereum’s spot ETF approvals earlier in 2024. As of 2025-09-08, LINK’s price jumped about 3% to over $23 right after the news, per CoinDesk reports, showing market excitement for regulated products.
Lila: So, does this mean more people will invest in Chainlink?
John: It could broaden access, especially for institutions wary of direct crypto handling. Looking back, similar filings have boosted token prices temporarily; for instance, Chainlink’s integration with major DeFi protocols has already grown its market cap to billions.
Risks and Considerations
John: While exciting, remember crypto’s volatility—LINK has swung wildly in the past, dropping over 80% during the 2022 bear market. Regulatory hurdles remain; the SEC might delay or deny approval, as seen with some past proposals.
Lila: What can beginners do to stay safe?
John: Always research thoroughly. Here’s a quick list of tips:
- Check official sources like the SEC website for filing updates.
- Diversify your portfolio—don’t put all eggs in one crypto basket.
- Understand fees: ETFs often have management costs around 0.25-2% annually.
- Monitor market news from trusted sites like Cointelegraph.
John: And on a serious note, no humor here—regulatory topics demand caution to avoid misleading anyone.
Looking Ahead
John: If approved, this could pave the way for more oracle-focused products by late 2025 or 2026, based on current trends. Chainlink continues evolving with updates like CCIP for cross-chain data, announced in 2023.
Lila: Any predictions on when we might see this ETF live?
John: No speculation, but historically, approvals take months—Bitcoin’s took about a year after key filings. Keep an eye on SEC comments in the coming weeks.
John: Wrapping up, this Grayscale filing is a step toward mainstreaming Chainlink, blending crypto innovation with traditional finance. It’s encouraging for the space, showing maturity without losing that blockchain spark. Stay tuned, folks, and remember to learn at your own pace.
Lila: Totally agree—it’s like opening a new door for curious investors. Thanks for breaking it down, John; now I’m excited to follow Chainlink’s journey!
This article was created using the original article below and verified real-time sources:
- Grayscale files to convert $30 million Chainlink trust into staking ETF on NYSE Arca
- Grayscale Files S-1 With The SEC For Chainlink ETF | BanklessTimes
- Chainlink (LINK) News: Higher on Grayscale ETF Filing
- Grayscale Files for Chainlink ETF with SEC, LINK Price Rebounds