Grayscale’s Chainlink ETF Approved as LINK Faces Bearish Pressure
Grayscale has received Federal Register approval to convert its Chainlink Trust into the first U.S.-listed Chainlink ETF, set to begin trading on NYSE Arca this week. The move provides regulated, institutional and retail access to Chainlink (LINK) — a leading oracle protocol used to feed real-world data into smart contracts — without direct token custody. The approval signals growing institutional interest in crypto infrastructure beyond Bitcoin and Ethereum.
Market data and technical analysis show LINK remains under selling pressure. Analysts (cited: GainMuse) report LINK is trading inside a descending channel, forming lower highs and failing to sustain recent bounces. Critical support is identified at about $10.5–$11.0; price near $12.68 faces repeated rejections. A decisive breakout above the channel’s resistance would be needed to reverse the downtrend; until then bearish dynamics dominate. Traders should watch ETF launch flows, institutional demand, and the $10.5–$11.0 support and descending resistance levels for near-term direction.
Neutral
The news is structurally positive because a U.S.-listed Chainlink ETF expands regulated access and can attract institutional capital to LINK. That tends to be bullish over the medium to long term as ETFs lower custody/friction barriers and can increase demand. However, current price action and technicals remain bearish: LINK trades in a descending channel with repeated rejections and critical support near $10.5–$11.0. Short-term market direction will hinge on ETF inflows and whether buying can overcome existing selling pressure. Historically, approval and launch of ETFs (e.g., Bitcoin spot ETF approvals) have supported price appreciation over weeks to months as inflows materialize, but initial launches can see muted or mixed reactions if retail/arb flows and liquidity conditions don’t immediately push prices higher. Therefore, expect potential medium-term upside if the ETF draws sustained demand, but near-term volatility and downward technical bias make immediate bullish conviction weak. Traders should monitor ETF AUM and daily flows, on‑chain/derivatives metrics, and the $10.5–$11.0 support and descending resistance for actionable signals.