Grayscale is set to convert its existing Chainlink Trust into a spot Chainlink ETF (GLNK) with an integrated staking feature, offering U.S. investors regulated exposure to LINK, according to ETF Institute co-founder Nate Geraci. The move aims to broaden institutional and retail access to Chainlink while raising fresh regulatory questions about yield mechanisms in listed crypto products.
Grayscale’s GLNK will be created from the Chainlink Trust formed in 2020; that trust manages roughly $29M in assets and has a year-to-date return of -66.85%, data from the trust indicate. The ETF’s notable innovation is an incorporated staking component that would allow holders to earn staking yields while maintaining spot exposure to LINK.
Staking is the process by which token holders lock assets to help secure or operate a blockchain network in exchange for rewards. The inclusion of staking within a regulated ETF has prompted scrutiny from U.S. regulators, who have specific concerns about how staking rewards are classified, potential conflicts of interest in fund operations, the operational complexity of running staking at scale inside a fund structure, and the adequacy of investor protections for yield-bearing mechanisms.
A short, contextual quotation from market commentary captured the industry mood: ‘opening the floodgates’, Nate Geraci noted, describing how easing administrative constraints contributed to the recent approval cadence. That remark was offered to highlight why firms are moving quickly to list altcoin ETFs.
Market context for Grayscale
GLNK joins a competitive field. A rival Chainlink ETF filed by Bitwise, tagged CLNK, appears on the DTCC registry but omits staking, a structural difference that could influence investor preference between yield and regulatory simplicity. Grayscale’s launch follows two other recent U.S. crypto ETF debuts from the firm: a Dogecoin ETF listed on November 24, 2025, and a spot XRP ETF that began trading as early as November 13, 2025 — illustrating a rapid sequence of approvals for altcoin products.
For traders, staking inside an ETF changes the calculus: potential yield can improve total return but may introduce tracking variance versus spot LINK and create additional tax and liquidity considerations. Crypto treasuries considering GLNK should weigh operational transparency and counterparty risk tied to staking execution. Institutional allocators will likely demand clear disclosures on how staking rewards are calculated and distributed, and how the fund manages validator selection, slashing risk, and custody.
Operational complexity and compliance remain principal risks. The SEC’s focus on staking suggests funds that incorporate yield will face greater ongoing review, which could affect rollout timelines, reporting requirements, or allowable marketing language. Conversely, a successful launch with reliable reporting could catalyze flows into altcoin ETFs and set structural precedents for other yield-bearing products.
The immediate next verified milestone is the NYSE Arca listing of GLNK on December 2, 2025, when the converted trust would begin trading as the first U.S. spot Chainlink ETF. Market participants should monitor post-listing disclosures on staking mechanics and ongoing regulatory commentary to assess operational risk and potential investor flows.
