Bitwise's spot Chainlink exchange-traded fund (ETF) has appeared on the Depository Trust and Clearing Corporation’s registry, a typically positive indicator that the fund is progressing towards its launch.
The Bitwise Chainlink ETF was added to the DTCC’s “active” and “pre-launch” categories on Tuesday under the ticker CLNK. While these listings do not guarantee approval from the U.S. Securities and Exchange Commission (SEC), they have historically been a strong sign that a product is nearing the green light.
The DTCC functions as a post-trade market infrastructure platform, responsible for clearing, settling, and recording transactions. It serves as a central hub for markets, ensuring the efficient and secure processing of trades in assets such as stocks and ETFs.
Bitwise has not yet filed a Form 8-A for its Chainlink product. This filing is one of the final required documents before securities can be offered on an exchange and typically indicates that a product's launch is imminent.
Earlier in August, Bitwise submitted a Form S-1 statement for the ETF to register the product with the SEC. The ETF aims to mirror the price of Chainlink (LINK), the token that powers Chainlink's decentralized oracle network. This network provides real-time data to smart contracts on the blockchain.
Grayscale is another crypto asset manager with a spot Chainlink ETF in development. However, it may encounter more regulatory hurdles than Bitwise, particularly as it intends to incorporate staking into its offering.
Government Shutdown's Impact on ETF Processes
Numerous spot crypto ETFs are currently awaiting SEC approval amidst the ongoing U.S. government shutdown, which has entered its 42nd day. However, the shutdown is anticipated to conclude this week following the Senate's passage of a funding bill.
Crypto asset managers have been filing for ETFs to track a range of increasingly speculative altcoins, hoping to capture investor interest. These altcoins include Dogecoin (DOGE), Solana (SOL), Aptos (APT), Avalanche (AVAX), and Hedera (HBAR).
New SEC Listing Standards May Facilitate More Approvals
Industry analysts are now predicting an increase in spot crypto ETF approvals. This optimism stems from the SEC's introduction of new generic listing standards, which allow for the approval of crypto investment products without requiring individual case-by-case reviews.
The SEC's updated listing standards were released on September 17, leaving a limited window for these new rules to be implemented before the U.S. government shutdown.
Since then, the government shutdown has significantly constrained the SEC's operational capacity and funding.