Chainlink has had a strong week following the launch of the first American spot ETF for the token. The investment firm Grayscale brought the Grayscale Chainlink Trust ETF (GLNK) to market this past Tuesday. This gives investors direct exposure to the Chainlink price through a regulated exchange product for the first time.
The introduction of the exchange product led to a clear increase in trading activity and a solid price rally for Chainlink, also known by its ticker LINK.
Millions in Inflows on First Trading Day #
On its opening day, GLNK recorded a net inflow of over €31.7 million. The Chainlink price also reacted immediately. LINK rose by nearly 7 percent to approximately $14.40 per token. The combination of inflows and price reaction indicates that institutional parties are increasingly paying attention to infrastructure tokens like Chainlink.
Infrastructure tokens are crypto tokens from networks that provide ‘base layer’ services for other crypto applications, such as data oracles, interoperability, and computing. Data oracles supply reliable real-world data, like prices, to blockchains. Interoperability connects different blockchains so they can communicate with each other. Computing offers processing power and/or services for applications that run on or around blockchains.
ETF Lowers Barrier for Traditional Investors #
The launch of the new ETF originated from the conversion of an existing private trust by Grayscale. GLNK offers exposure to the spot price of Chainlink without investors needing to store crypto themselves or manage a wallet. This lowers the entry barrier for institutional and traditional investors who want market access but not the burden of managing the cryptocurrencies.
The product is not subject to the American Investment Company Act of 1940. This means it has different rules than traditional ETFs. Grayscale emphasizes that an investment in GLNK is not a direct purchase of Chainlink, but offers indirect exposure through the exchange fund.
Institutional Interest in Altcoins on the Rise #
For the broader crypto market, the arrival of GLNK is another new step in the rapid growth of crypto ETFs. For example, Dogecoin made its stock market debut two weeks ago, and XRP also made the leap to its own ETF. The fact that Chainlink now has an American spot ETF shows that the interest of institutional investors is increasingly shifting towards infrastructure tokens beyond the largest coins.
However, many investors still see crypto ETFs as ‘risky’, especially due to market volatility. The reaction to the GLNK launch shows that new institutional products immediately influence trading volume, sentiment, and price support for cryptocurrencies.