Key Insights:
- The Bitwise Chainlink ETF has been listed on the DTCC platform, signaling infrastructure readiness for its SEC approval process.
- LINK’s price has dropped by more than 7%, reaching a low of $15.20, as investor sentiment weakens.
- The delay in SEC approval of the ETF is due to the ongoing U.S. government shutdown, with a resolution expected soon.
The Bitwise Chainlink ETF has officially appeared on the DTCC (Depository Trust & Clearing Corporation) platform, listed under the ticker CLNK. This marks a significant procedural milestone in the ETF’s journey, but does not yet confirm regulatory approval. While the U.S. Securities and Exchange Commission (SEC) holds the final authority on approval, the listing on the DTCC platform is an essential step in the standard clearing and settlement process, signaling the readiness of the infrastructure for custody and settlement.
The listing on the DTCC platform indicates that the infrastructure needed for managing the ETF is in place, a crucial step before it can move to the SEC’s approval stage. However, the decision on whether the ETF will be approved still lies with the SEC. In recent developments, similar ETFs tracking the spot prices of other cryptocurrencies like Solana (SOL), HBAR, and Litecoin (LTC) have seen auto-effective listings, which occur when SEC intervention is bypassed due to government shutdowns.
Delay in SEC Approval Due to Government Shutdown
The approval of the Bitwise Chainlink ETF has been delayed due to the ongoing U.S. government shutdown. While the SEC is responsible for the final decision, the government shutdown has stalled the process. There are expectations that the government will reopen soon, pending a vote in the House, which could bring a resolution to the situation and allow the SEC to make its final decision.
LINK Price Drops Amid ETF Speculation
Despite the anticipation surrounding the ETF, Chainlink’s (LINK) price has experienced a sharp decline. Over the last 24 hours, the price of LINK has fallen more than 7%, reaching an intraday low of $15.20. As of now, LINK is trading at approximately $15.36, with a significant 20% drop in trading volume during this period. Market sentiment has been bearish, with predictions of a potential crash fueled by whale selling and decreasing trader interest.
The futures market for LINK also reflects the declining interest. Data from CoinGlass shows a drop in total LINK futures open interest by over 8%, now standing at $645.28 million. The decline in futures open interest has been observed across multiple platforms, including Binance, OKX, and Bybit, which have all seen significant decreases in the 4-hour futures open interest.
