Grayscale’s Record LINK Reserve Fuels NYSE Arca ETF Launch

Grayscale just loaded the chamber. The crypto asset manager is gearing up to launch a LINK exchange-traded fund on NYSE Arca, backed by what it calls a record reserve of Chainlink's token. This isn't a tentative filing—it's a launchpad primed with actual assets.

The Institutional On-Ramp Gets a New Lane

For traditional finance, accessing crypto has often meant navigating custody headaches and regulatory gray areas. An ETF changes the game. It wraps the underlying asset in a familiar, regulated wrapper that trades on a major stock exchange. Grayscale's move signals it's not just betting on LINK's technology, but on overwhelming institutional demand for a clean, simple way to get exposure.

Why LINK, and Why Now?

Chainlink's oracle networks have become critical plumbing for decentralized finance. They feed real-world data—prices, weather, sports scores—directly into smart contracts on blockchains like Ethereum. As DeFi and other on-chain applications grow, so does the need for reliable data. Grayscale's massive reserve suggests a bet that this infrastructure role is only becoming more valuable, and more investable.

A Cynical Nod to Wall Street

Let's be real—this also lets portfolio managers check the 'crypto exposure' box for clients without having to explain what a blockchain oracle actually is. Sometimes innovation in finance is just better packaging for the same speculative bet.

The ETF arena is getting crowded, but Grayscale's strategy is clear: come heavy or don't come at all. By securing a record reserve upfront, they're not just announcing a product; they're demonstrating conviction. This launch will test whether Wall Street's appetite for crypto has evolved from mere curiosity to strategic allocation.

Grayscale warned that an investment in GLINK is still potentially volatile. The fund is also not a direct investment in LINK. 

LINK trades near yearly lows

LINK remains an actively traded legacy asset with multiple centralized listings. The token also allows for staking, with some of the supply locked. 

Currently, LINK has a total supply of 1B tokens, with 631M in circulation. LINK tokens are 59% unlocked, with only regular linear unlocks until the end of 2027. 

Despite the imminent launch of the ETF, LINK remained NEAR its yearly lows. LINK has been sliding for the past three months, down to $12.07. Despite the increased interest, LINK has failed to break new all-time highs or retain its levels above $50. 

LINK trading volumes are also near one-year lows. LINK open interest also crashed to lows of $235M, showing the token hardly invites speculative interest. The asset also does not reflect the key roles of the Chainlink project, and has taken the path of legacy altcoins and tokens. 

LINK supply on exchanges near all-time lows

LINK has been flowing out of exchanges for the past month, with supply near all-time lows on both spot and derivative exchanges. The recent buying from Grayscale coincides with a supply crunch on spot exchanges. 

LINK supply on spot exchanges diminished significantly since October 13, but the market price has not responded to the supply crunch. | Source: Cryptoquant

Spot exchanges only hold around 8M LINK, while Grayscale holds 1.3M. The coming weeks will show if ETF demand changes the outlook for LINK, and if there is enough OTC supply or other sources of demand. For now, even the data of a spot exchange supply crunch has failed to lift LINK. 

Despite the near-ubiquitous presence of Chainlink data and high-profile partnerships, the project produces only around $15K in fees daily. Oracle usage has been rising, but failed to boost demand for LINK. 

LINK is still expected to make a comeback after a recent rise in mindshare by 30%. The token has 0.4% of mindshare on social media, as the Chainlink army’s pull does not hold up well against other projects and tickers. Additionally, LINK is still under pressure from team selling. 

Also, there is no real wave to make LINK a reserve asset for treasury companies, with Chainlink Labs standing alone in that category. 

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