Summary:
The crypto ETF race is heating up as Chainlink (LINK) and XRP emerge as contenders. Bitwise has filed an application with the SEC for a Chainlink ETF, aiming to provide investors with direct exposure to LINK. Meanwhile, XRP is also in the ETF spotlight, with Bitwise submitting amended S-1 forms for its XRP ETF. Both tokens are vying for regulatory approval, setting the stage for a competitive ETF landscape.
What This Means for You:
- Consider diversifying your crypto portfolio with LINK and XRP as ETF developments could drive price momentum.
- Monitor SEC updates closely for ETF approval timelines, which could present short-term trading opportunities.
- Be cautious of market volatility as ETF news may lead to sudden price swings in both tokens.
- Stay informed about institutional adoption trends, as ETF approvals could significantly impact crypto markets.
Chainlink Vs. XRP Battle Heats Up As Bitwise Files For LINK ETF:
The race for crypto ETFs is intensifying as two tokens, Chainlink (LINK) and XRP, come under scrutiny. Crypto asset manager Bitwise officially submitted paperwork with the U.S. Securities and Exchange Commission (SEC) on Tuesday, seeking to launch a Bitwise Chainlink ETF that provides investors with direct exposure to LINK, the native token of the oracle network.
Bitwise Pushes Forward With Chainlink ETF Filing
According to the S-1 filing, the fund will directly hold LINK, providing investors with a way to gain exposure to the token without having to purchase it directly on the open market. In practice, this means that investors can create shares using the LINK token and redeem their shares to receive LINK again, or they can complete the process in cash. Shares in the fund will also be issued and redeemed in cash, a Trust-Directed-Trade process that mirrors the structure of other spot ETFs.
The SEC has only recently begun to allow issuers to offer in-kind creation and redemption for crypto-based ETFs. The Bitwise Chainlink ETF application does not yet include a ticker symbol. It does not specify the exact listing venue. Still, Bitwise plans to list the fund on a U.S. national securities exchange after obtaining approval from the SEC. The paperwork, however, shows that Coinbase Custody Trust Company would act as the custodian for the LINK tokens and also serve as the prime execution agent.
Chainlink’s price action has already responded positively to the news of the Bitwise ETF application. The token is trading above $23 and has gained nearly 5% in the daily chart. Traders are now watching to see if LINK can extend its ETF momentum and push toward a price breakout to $30 if the cryptocurrency continues its uptrend.
Chainlink And XRP Battle For ETF Spotlight
While Chainlink is gaining attention with its ETF filing, XRP is not far behind in the race. Bitwise has filed amended S-1 forms for its XRP ETF, with key catalysts for possible SEC approval expected in October. The amendments to the XRP ETF filing were likely made in response to feedback from the SEC.
If the XRP ETF follows a path similar to Ethereum’s, market experts predict approval could come first, with trading beginning about two months later. Meanwhile, if it follows the same pattern as Bitcoin ETFs, the most favorable outcome could see trading begin within just one to five days after approval, rather than waiting months.
With Bitwise filing for a LINK ETF and also pursuing an XRP product, both tokens are firmly in the spotlight and could soon compete directly as regulated investment products available through spot ETFs.
XRP’s price action remains steady despite waiting for ETF approval. The token is hovering near $3.22 after recently climbing to $3.60. Traders are now watching to see if XRP can break out again as the ETF review process moves forward.
Featured image from DALL.E, chart from TradingView.com
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Extra Information:
For more insights on Chainlink’s institutional adoption, read this analysis. To understand the broader ETF landscape, explore Bitwise’s official filing and XRP ETF updates.
People Also Ask About:
- What is a Chainlink ETF? A Chainlink ETF allows investors to gain exposure to LINK without directly owning the token.
- When will the XRP ETF be approved? Analysts predict potential approval in October, subject to SEC feedback.
- How do ETFs impact crypto prices? ETFs can drive price momentum by increasing institutional demand.
- What is Bitwise’s role in crypto ETFs? Bitwise is a leading asset manager filing for both LINK and XRP ETFs.
Expert Opinion:
“The emergence of LINK and XRP ETFs marks a pivotal moment for crypto’s institutional adoption. Investors should prepare for increased market volatility and new opportunities as these tokens gain regulated exposure,” says a leading crypto analyst.
Key Terms:
- Chainlink ETF
- XRP ETF
- Bitwise SEC filing
- Crypto institutional adoption
- Spot ETFs
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