# Grayscale Chainlink Trust ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Grayscale Chainlink Trust ETF).

## Overview

Grayscale Chainlink Trust ETF is a Delaware statutory trust designed to provide investors with exposure to Chainlink (LINK) through shares that are backed by LINK held by the trust. It is a passive investment vehicle rather than an operating company, and its value is driven primarily by the market price of LINK, the trust’s holdings, and trust expenses.

## Products & services

{"• Shares backed by Chainlink (LINK) holdings","• Creation and redemption of 10,000-share baskets","• Passive LINK price exposure via NYSE Arca listing","• NAV and principal-market pricing disclosure"}

- **Investment Trust Shares** (100%) — Exchange-traded shares representing beneficial ownership in a trust that holds LINK.
- **Creation and Redemption Activity** (0%) — Basket issuance and redemption mechanics used by authorized participants to move in and out of the trust.

- Shares backed by Chainlink (LINK) holdings
- Creation and redemption of 10,000-share baskets
- Passive LINK price exposure via NYSE Arca listing
- NAV and principal-market pricing disclosure
- Trust administration and sponsor-managed operations

## Customers

The trust’s customers are investors seeking regulated, brokerage-account access to Chainlink exposure without directly holding digital assets. Its shares are bought by authorized participants for creation/redemption activity and by public market investors who want a listed vehicle tied to LINK’s price. Demand comes from both speculative crypto allocators and investors who prefer custody, reporting, and exchange-traded access.

- **Authorized Participants** (primary) — Financial institutions that create and redeem baskets in exchange for LINK, enabling the ETF structure to function.
- **Retail brokerage investors** (primary) — Individuals buying shares on NYSE Arca for simple, account-based exposure to LINK price movements.
- **Institutional digital asset allocators** (secondary) — Funds and professional investors using the trust as a regulated wrapper for portfolio exposure to Chainlink.
- **Crypto-native traders** (secondary) — Market participants who prefer exchange-traded exposure over direct token custody and wallet management.

- Authorized Participants creating or redeeming baskets
- Retail investors seeking exchange-traded LINK exposure
- Institutional investors allocating to digital assets
- Crypto traders using listed wrappers instead of spot wallets
- Investors wanting custody and reporting convenience

## Geography

The trust is organized in Delaware and administered from the United States, with shares trading on NYSE Arca. Its economic exposure is global because LINK trades on international digital asset platforms and the trust’s value depends on worldwide crypto market pricing rather than operating geography. The main geographic risk is U.S. regulatory action, which could affect LINK’s tradability, custody, or the trust’s ability to operate as intended.

- **United States** (100%) — Trust domicile, sponsor location, and listing venue are U.S.-based.

- U.S.-domiciled Delaware statutory trust
- Managed from Stamford, Connecticut by the sponsor
- Shares trade on NYSE Arca in the United States
- LINK pricing depends on global digital asset markets
- U.S. regulation is the main jurisdictional risk

## Strategy

The trust’s strategy is to maintain passive exposure to LINK by holding the token and reflecting its value through shares, while keeping operations simple and rules-based. Its recent structural change to an ETF-style listing and the commencement of redemptions broaden access and improve market functionality for investors and authorized participants.

- **Preserve passive LINK exposure** (short-term) — The trust exists to track LINK value as closely as possible after expenses.
- **Improve market access and liquidity** (short-term) — Redemptions and exchange trading make the product easier to use for investors and APs.
- **Maintain operational simplicity** (medium-term) — A passive trust structure reduces operating complexity and keeps the product focused on token exposure.

- Maintain one-to-one style exposure to LINK price movements
- Support creations and redemptions to improve liquidity
- Use principal-market and index-based valuation methods
- Keep the structure passive with no leverage or derivatives
- Expand access through exchange listing and ETF-style format

## Risks

The trust’s performance is highly exposed to LINK price volatility, regulatory developments, and the market’s willingness to treat Chainlink as a consumptive digital asset rather than a security. Because the trust is a passive wrapper, it also depends on the functioning of digital asset trading venues, authorized participants, and the broader acceptance of the Chainlink Network.

- **Extreme LINK price volatility** [critical] — The trust’s net asset value and share price move with LINK, so token drawdowns directly hit investors.
- **Regulatory or securities-law action** [high] — The SEC or other regulators could restrict LINK trading, custody, or the trust’s structure.
- **Chainlink Network adoption slows** [high] — The trust depends on continued use and perceived utility of LINK within the network.
- **Concentrated token ownership** [high] — Large holders can move market price materially if they sell or distribute LINK.
- **Digital asset market infrastructure risk** [medium] — Trading platforms, pricing sources, and liquidity providers are essential to valuation and creations/redemptions.

- LINK price volatility can sharply reduce share value
- U.S. regulation could restrict LINK or the trust structure
- Security classification risk could impair market access
- Concentrated LINK ownership can amplify sell-off pressure
- Digital asset platform disruptions can affect pricing and liquidity

## Accounting

The trust accounts for LINK at fair value, using a principal-market price for U.S. GAAP reporting and a separate index-based NAV metric for investors. Because creations, redemptions, and sponsor fees can be settled in LINK, changes in token price flow directly through unrealized and realized gains or losses, making reported results highly sensitive to valuation dates and market pricing. The trust also has limited cash activity, so accounting is dominated by fair-value measurement rather than operating revenue recognition.

- **Fair value measurement of LINK** — Principal-market price versus index price can change reported NAV
- **Realized and unrealized gains/losses** — Earnings can swing materially with LINK price moves
- **Creation and redemption accounting** — Can change both asset balances and period performance
- **Non-GAAP NAV presentation** — Investors must compare both measures carefully

- Fair value of LINK drives reported assets and earnings
- Principal-market selection affects U.S. GAAP NAV
- Index-based NAV is non-GAAP and may differ from GAAP
- Creations/redemptions in LINK create realized gains or losses
- Sponsor fees paid in LINK affect realized results

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*Last updated: 2026-04-28T20:12:08.065089+00:00*