Grayscale has successfully converted its private Chainlink Trust into the Grayscale Chainlink Trust ETF (GLNK), launching it on NYSE Arca as the first U.S. spot Chainlink ETF. This transition, which was aided by SEC guidelines during a governmental shutdown, allows GLNK to hold Chainlink's native cryptocurrency, LINK, as its sole asset. On its debut, the ETF saw an impressive trading volume of over 1.17 million shares, surpassing typical levels for such a product.
The choice to focus on Chainlink for this ETF was influenced by Grayscale's longstanding support of the Chainlink oracle network, which has functioned as a private fund since 2021. By offering this ETF, Grayscale becomes the pioneer in providing investors with access to blockchain oracles via an ETF, facilitating direct engagement with crucial blockchain infrastructure.
Chainlink's oracle network is designed to connect smart contracts across any blockchain with real-world data, events, and off-chain computations. This infrastructure helps synchronize information between on-chain and off-chain environments, as noted in GLNK’s prospectus.
The conversion to an ETF follows a similar path to Grayscale's recent DOGE and XRP ETF launches, which also transitioned after meeting procedural requirements. These cash-only models mean authorized participants bear more responsibility for buying and selling, leading to potentially wider price points during initial trading. The SEC's updated listing standards, approved in September, were crucial in enabling Grayscale's launch of the GLNK product. The company leveraged the SEC's guidance during the government shutdown to file for GLNK, resulting in a 20-day period after which the product became effective automatically.
Reflecting on the initial trading, a Grayscale representative expressed optimism about the trading volume, which was notably robust. By the close of its first trading day, GLNK's price had risen 5.8% to $11.89, with after-hours trading pushing it to approximately $12. The high trading volume suggests strong investor interest and active price discovery as the ETF transitioned from over-the-counter markets to NYSE Arca. Grayscale reports enthusiasm across a broad range of investors, in line with the active secondary market activity observed.