#What is the New Bitwise Chainlink ETF?
The Bitwise Chainlink ETF has received clearance for listing on NYSE Arca, with trading potentially starting as soon as tomorrow. This innovative financial product provides investors with a streamlined way to gain exposure to Chainlink, one of the largest cryptocurrencies by market capitalization, without the need for direct token management.
#How Does the Bitwise Chainlink ETF Work?
The ETF will directly hold Chainlink (LINK) and will be available for trading under the ticker symbol CLNK. Designed primarily to simplify access for retail investors, the Bitwise Chainlink ETF aims to reduce operational and custody challenges typically associated with investing in cryptocurrencies. Importantly, this fund will not engage in staking at launch, although plans for seeking approval for staking as an additional objective are set for the future. This could potentially enable the trust to accumulate more LINK over time.
#What are the Costs Involved?
The fund will operate with a management fee of 0.34%. Additionally, for its initial three months on the market, Bitwise will waive the full sponsor fee on the first $500 million of assets to help minimize costs for early investors.
#What is Chainlink and Why is it Important?
Chainlink functions as a decentralized oracle network, facilitating smart contracts by securely connecting various blockchains with external data sources and off-chain systems. This capability is valuable in enhancing the performance and reliability of blockchain applications.
As of now, LINK is trading at $14, reflecting a 7.5% gain over the past 24 hours, following a broader market recovery that saw Bitcoin rise to $96,000.
#How Does This ETF Compare to Others?
The Bitwise Chainlink ETF is noteworthy as it represents the second U.S. spot fund linked to LINK, following the approval of Grayscale's Chainlink Trust conversion into a spot ETF (GLNK) just last month. The GLNK fund has successfully accumulated $87.5 million in assets according to the latest figures.