Key takeaways
- LINK rose by nearly 6% and is currently trading above $23 per coin.
- Grayscale filed to convert its existing LINK trust into a GLNK ETF; if approved, the fund could incorporate staking.
Grayscale files to convert Chainlink Trust into an ETF
Digital asset manager Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to convert its existing Chainlink Trust into a spot exchange-traded fund (ETF). According to the S-1 registration statement submitted to regulators on Monday, Grayscale said the ETF would trade on NYSE Arca under the ticker GLNK if approved.
The filing also includes a potential staking feature. If authorized, the ETF would make use of third-party staking providers while keeping LINK tokens in custodial wallets. Grayscale explained that staking rewards could be retained by the ETF, distributed to stakeholders, or sold to cover expenses.
LINK eyes $27 as altcoins rally
The 4-hour LINK/USD chart shows a bullish but somewhat inefficient setup as altcoins have gained since the start of the week. LINK is trading above $23 and is now targeting its recent high.
An RSI reading of 63 indicates LINK is moving toward overbought territory, while MACD lines sit in bullish territory as well. If the rally continues, LINK could revisit the $27.94 peak recorded on August 22. However, a temporary pullback to $22 could occur to restore market efficiency before resuming the uptrend. A sustained rally would put LINK on track to test the psychological $30 level in the coming days or weeks.
In a market correction, LINK could retest the TLQ and support around $21. Failure to hold that support might see LINK fall below $20 for the first time in over four weeks.