Key Points
- LINK is up 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 said that if approved the ETF would trade on NYSE Arca under the ticker GLNK.
The filing also outlines a potential staking feature. If authorized, the ETF would rely on third-party staking providers while keeping LINK tokens in custodian wallets. Grayscale said the ETF could retain staking rewards, distribute them to shareholders, or sell them to cover expenses.
LINK eyes $27 as altcoins climb
The 4-hour chart for LINK/USD shows a bullish but somewhat inefficient trend, in line with a broader altcoin rally that began earlier this week. LINK is trading above $23 and is aiming to reach its recent highs.
An RSI reading of 63 indicates LINK is moving toward overbought territory, while MACD lines sit within bullish territory as well. If the rally continues, LINK could reach the recent high of $27.94 set on August 22. That said, LINK may briefly pull back toward $22 to improve price efficiency before resuming its ascent. A sustained rally could push LINK toward the psychological $30 level in the coming days or weeks.
However, in the event of a market correction, LINK could retest the TLQ and the $21 support level. Failure to hold that support might see LINK dip below $20 for the first time in more than four weeks.