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Grayscale’s Chainlink ETF (GLNK) Debuts With $41.5M Inflows, Signaling Rising Institutional Demand
Grayscale’s much-anticipated Chainlink Trust ETF ($GLNK) made its debut this week, attracting significant attention and institutional inflows. Launched on Tuesday, the ETF saw an impressive $41.5 million in its first-day trading, signaling a growing demand for altcoin ETFs in the United States. The launch marks a key milestone in the cryptocurrency space, expanding beyond the traditional Bitcoin and Ethereum exposure that institutional investors have favored.
ETF Launch Reflects Rising Institutional Interest in Chainlink
The Grayscale Chainlink Trust ETF, now trading under the ticker $GLNK on NYSE Arca, is the first spot Chainlink ETF available to U.S. investors. As of December 3, the ETF experienced $40.90 million in net inflows, pushing total net assets to $67.55 million, with $8.45 million in volume. The ETF ended its first day up 7.74%, closing at $12.81 per share.
This strategic move comes after Grayscale converted its existing Chainlink Trust, launched in February 2021, into the ETF. The goal is to provide institutions with direct exposure to LINK via traditional accounts, marking a shift in how crypto assets are being integrated into institutional portfolios.
Technical Breakout and Whale Activity Surge
The ETF launch coincided with a technical breakout for LINK. The token, which had been trapped in a month-long downward channel, broke out, sparking optimism that the altcoin could soon surpass its 2021 highs. According to on-chain data, major whale accumulation has also been observed in the lead-up to the launch, with 39 new wallets withdrawing 9.94 million LINK from Binance since October. Despite these signs of confidence, some whale positions have been hit with unrealized losses, showcasing the volatility of LINK’s price action.
Market Dynamics: Bulls vs. Bears
The open interest in LINK has surged to around $7 million, reflecting renewed confidence from traders and growing momentum. However, analysts remain cautious, noting that whales who accumulated LINK before the ETF launch may soon begin to sell, creating potential short-term selling pressure. As institutional inflows continue to rise, the market will be watching closely to see if LINK can sustain its momentum or if profit-taking will lead to a correction before new highs.
The launch of $GLNK highlights the continued evolution of cryptocurrency ETFs, with institutional interest pushing the market into new territories, while also presenting the risks that come with volatility and whale activity.
