Crypto ETFs: A New Frontier for Chainlink (LINK) and XRP
As the cryptocurrency landscape evolves, so does the competitive arena for exchange-traded funds (ETFs). The spotlight is now on two prominent digital assets: Chainlink (LINK) and XRP. In a strategic move, Bitwise Asset Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to introduce a Bitwise Chainlink ETF. This initiative aims to offer investors direct exposure to LINK, the native token of Chainlink’s decentralized oracle network.
Bitwise’s Ambitious Chainlink ETF Initiative
Per the S-1 filing, Bitwise’s proposed fund will directly hold LINK, enabling investors to gain exposure without the need to purchase the token directly from exchanges. This setup allows investors to create and redeem shares using LINK or through cash transactions, aligning with the typical structure of spot ETFs. The SEC’s recent policies now permit in-kind creation and redemption for cryptocurrency-based ETFs, marking a significant development in the sector.
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Although Bitwise has yet to decide on a ticker symbol or a specific exchange for listing, their intention is to secure a spot on a U.S. national securities exchange post-SEC approval. The filing specifies that Coinbase Custody Trust Company will serve as the custodian and primary execution agent for the LINK tokens.
The announcement of the Bitwise Chainlink ETF has positively influenced LINK’s market performance, with the token trading above $23 and experiencing a near 5% daily increase. The crypto community is keenly observing whether LINK can leverage this momentum to reach new heights, potentially targeting the $30 mark if the bullish trend persists.
The Competition Heats Up: Chainlink vs. XRP
While Chainlink is making strides with its ETF application, XRP is also vying for attention in this burgeoning sector. Bitwise has revised its S-1 forms for an XRP ETF, anticipating a potential SEC approval in October. These amendments likely reflect feedback from the SEC, suggesting a proactive approach to align with regulatory expectations.
Should the XRP ETF follow Ethereum’s trajectory, industry analysts suggest approval could precede trading by around two months. Conversely, if it mirrors Bitcoin ETFs, trading might commence as soon as one to five days after approval, accelerating the availability of XRP as a regulated investment product via spot ETFs.
Despite awaiting regulatory approval, XRP’s price remains stable around $3.22, having recently peaked at $3.60. Traders are closely monitoring the situation, eager to see if XRP can achieve a breakout as the ETF evaluation progresses.
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