Bitwise spot Chainlink ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) registry. This would be a good sign that the ETF will soon be launched.
The ETF has been traded with the ticker CLNK and added to the DTCC in both “active” and “pre-launch” categories. These classifications typically indicate that the product is on the verge of securing the approval of the US Securities and Exchange Commission (SEC).
DTCC is an infrastructural platform that clears, settles, and records trading. It serves as a key location in the financial markets so that the transactions with such assets as stock and ETF are conducted in the most efficient and safe way possible.
Bitwise is yet to submit the required Form 8-A regarding the Chainlink ETF. This form is one of the last forms that must be filed before an ETF can be introduced into an exchange.
The Chainlink ETF aims to track the real-time LINK price
According to the Form S-1 that Bitwise submitted to the SEC earlier this year, the Chainlink ETF is designed to track the price of Chainlink (LINK), a cryptocurrency that facilitates the Chainlink decentralised oracle network, delivering real-time information to blockchain smart contracts.
Another crypto asset manager, Grayscale, is also developing a spot Chainlink ETF. Nonetheless, ETFs offered by Grayscale might be exposed to further regulatory challenges. Particularly when staking is introduced as the new feature of its product.
Analysts forecast that even more spot crypto ETFs will be granted in the near future after the SEC introduced new generic listing standards that allow easier approval of crypto investment products without having to look at each case individually.
With Canary Capital’s Hedera and Litecoin ETFs already approved and live on Nasdaq, numerous other crypto ETFs are eyeing approval, with most taking advantage of the new approval process that requires little SEC input, especially during the ongoing US government shutdown, which constrains the SEC from actively examining new products.
Chainlink price outlook ahead of the ETF launch
The price of Chainlink (LINK) is likely to benefit from the approval of the Bitwise Chainlink ETF and end the current bearish trend.
At press time, Chainlink’s price was down 20% over the past 30 days, though momentum indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are showing signs of a possible recovery on the daily chart.
According to market analysis by a renowned analyst, LINK could rally to $18.29 if it holds above $14.46 as it awaits the approval of the Chainlink ETF.
But if the altcoin price drops below the $14.46 support, traders should watch out for the next support level at $13.43.