Key takeaways
- LINK has risen nearly 6% and is currently trading above $23 per coin.
- Grayscale has filed to convert its existing LINK trust into the GLNK ETF and may include staking if approved.
Grayscale files to convert its LINK trust into an ETF
Digital asset manager Grayscale has submitted an application to the U.S. Securities and Exchange Commission to convert its existing Chainlink Trust into a spot exchange-traded fund (ETF). In the S-1 registration statement filed with the regulator on Monday, Grayscale indicated that if approved, the ETF would trade on the NYSE Arca under the ticker GLNK.
The filing also outlines a potential staking feature. If authorized, the ETF would use third-party staking providers while keeping LINK tokens in custody wallets. Grayscale stated that staking rewards could be retained by the fund, distributed to shareholders, or sold to cover expenses.
LINK targets $27 as altcoins rally
The 4-hour chart for LINK/USD shows a bullish but somewhat inefficient setup as altcoins have been recovering since the start of the week. LINK is trading above $23 and is now eyeing its recent peak.
A 63 reading on the relative strength index suggests LINK is moving toward overbought territory, while MACD lines remain in bullish regions. If the rally persists, LINK could retest the $27.94 high reached on August 22. There is, however, the possibility of a short pullback to around $22 to restore market efficiency before any further advance. A sustained upswing could push LINK toward the psychological $30 level in the coming days or weeks.
On the other hand, if the broader market corrects, LINK may retest the trendline (TLQ) and the $21 support area. A break below that level could see LINK falling under $20 for the first time in more than four weeks.