The product should provide investors with access to Chainlink without the need to buy or store crypto assets. The application states that the fund will monitor the market value of the Link in the spot market based on the CME CF ChainLink-Dollar index. If the regulator approves the BitWise application, the ETF will be traded on one of the American stock exchanges. The name of the future exchange fund has not yet been disclosed, like a ticker.
Bitwise Investment Advisers, a subsidiary of the Bitwise Asset Management, will be the manager of the Fund. The maternal company will provide initial capital for launching ETF. Chainlink crypto acts, to which the fund is attached, will have to be stored in the castodial service Coinbase Custody. Each action of this ETF will be the ownership of Link coins, which are at the disposal of Trust.
The application also states that the ETF shares (PAI) will be redeemed with baskets of 10,000 pieces each specially authorized participants. Despite the fact that Chainlink uses the consensus algorithm for the evidence of the share (Proof-OF-STAKE, POS), BitWise did not mention in its application about the Link coins that can bring additional profits to investors.
In August, GrayScale announced plans to launch a spawn exchange fund on Dogecoin (Doge). In case of approval by the regulator, its papers will bargain on the NYSE Arca exchange under the GDOG ticer. Recently, the SEC has transferred to October a decision on applications for the launch of three cryptocurrency exchange funds.
Source: Bits
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