Chainlink (CRYPTO: LINK) witnessed a meaningful uptick of 4% over the last day, coinciding with two significant events that emerged earlier this week, both potentially influential in driving the token’s price higher. Firstly, Bitwise Asset Management secured approval to list a spot Chainlink ETF on the NYSE Arca exchange, trading under the symbol CLNK. Secondly, a draft bill released Tuesday by the Senate Banking Committee proposes regulatory treatment for LINK mirroring that of Bitcoin (CRYPTO: BTC), categorizing it under Commodity Futures Trading Commission (CFTC) oversight as a commodity rather than a security regulated by the Securities and Exchange Commission (SEC).
Bitwise Spot Chainlink ETF Launches with Initial Fee Waiver
The newly approved Bitwise Chainlink ETF is set to begin trading imminently on NYSE Arca. At launch, the fund offers a three-month fee waiver on assets up to $500 million, reducing the cost burden for early investors. After this period, the management fee will stand at 0.34% annually. The fund commenced operations with seed capital amounting to $2.5 million, representing 100,000 shares valued at $25 each.
Custodial responsibilities are allocated between Coinbase Custody, safeguarding the Chainlink tokens held, and BNY Mellon, which manages the cash securities. Though staking LINK is indicated as a secondary aim for the ETF, a concrete timeline has yet to be established. Should staking capabilities be incorporated, Attestant Ltd. is identified as the preferred service provider to administer this function.
Following the ETF announcement, LINK’s daily trading volume surged by approximately 45%, reflecting heightened market activity. Futures open interest concurrently increased to about $665 million, indicating substantial new position-taking rather than transient speculative trades.
Legislative Proposal Offers Bitcoin-Equivalent Regulatory Clarity for LINK
The Senate Banking Committee’s draft bill introduces a regulatory framework recognizing Chainlink as a commodity on par with Bitcoin. This classification deems LINK a 'non-ancillary asset' since Chainlink ETFs were actively trading on major exchanges prior to January 1. As a result, LINK would fall under the Commodity Futures Trading Commission’s purview, exempting it from SEC disclosure requirements and removing significant regulatory ambiguity that has lingered within the market.
Grayscale ETF and Institutional Demand Support Growing Market Interest
Amid these regulatory and product developments, Grayscale’s Chainlink ETF has documented steady investor inflows surpassing $62 million to date. This traction points to expanding institutional appetite for LINK exposure. With Bitwise entering the market with its spot ETF, institutions gain additional avenues to access LINK, which contributes to reinforcing demand.
Bitwise itself manages an estimated $15 billion in cryptocurrency assets under management and has progressively expanded its portfolio of regulated altcoin ETFs. Its history with Bitcoin and Ethereum ETFs bolsters confidence among institutional investors regarding the Chainlink offering, lending credibility to this newer ETF product.
Technical Chart Patterns Signal Potential Breakout After Prolonged Consolidation
On the technical front, Chainlink is approaching a critical test of a long-standing triangular consolidation pattern on its price chart. This triangle, which has compressed price action since the token’s November 2024 high near $31, recently positioned LINK just below a zone of substantial resistance between $14 and $15.
Multiple technical indicators converge in this range, marking it as a pivotal area. A successful breakout above $15 would constitute the first solid indication that LINK could initiate a more sustained upward move. Such a breakout scenario would open further price objectives, with $16 and subsequently $18 identified as next milestones.
Exceeding the $18 mark would allow LINK to escape the confines of the triangle pattern fully and target the $24 to $32 region, where significant prior supply was concentrated during the previous rally. The path to these levels involves intermediate targets, including $20 to $22.
Should LINK fail to hold support around $12.90 to $13.00, it would invalidate the current triangle structure and present the risk of sharper corrections toward $10 to $11, or possibly as low as $8 to $9. Maintaining support above this level is thus critical to preserving the bullish setup.
This 14-month consolidation period is often characteristic of basing phases that precede robust breakouts. Coupling this technical setup with the fresh fundamental developments of the ETF launch and regulatory clarity provides a compelling backdrop for institutional capital inflows.
Conclusion
In summation, Chainlink’s recent 4% price advance reflects renewed investor interest fostered by two key catalysts: the Bitwise spot ETF debut on a major U.S. exchange combined with a Senate legislative move proposing Bitcoin-like commodity status. The ETF offers investors a low-cost gateway initially, with asset protection facilitated through reputable custodians. Concurrently, legislative developments mitigate regulatory uncertainties, positioning LINK for broader institutional adoption.
Amplifying the fundamental picture, inflows to related institutional ETFs and the technical chart’s breakout potential contribute to an environment that could support further price gains. LINK faces critical resistance levels that will influence its trajectory, with downside support levels defining risk thresholds. Investors will be watching closely to see if LINK can navigate these technical and fundamental inflection points to emulate momentum seen in similar assets.