The Grayscale Chainlink Trust ETF ($GLNK) launched on Tuesday, raising about $41.5 million in its first day, marking a milestone for U.S. altcoin ETFs.
Institutional demand for exposure to cryptocurrencies is expanding beyond Bitcoin and Ethereum. As a result, many investors are now focused on whether LINK can reach new all-time highs.
ETF launch reflects growing interest from institutional investors
The Grayscale Chainlink Trust ETF, which trades on the NYSE Arca under the ticker $GLNK, is the first spot Chainlink ETF available to U.S. investors. As of Dec. 3, it had net inflows of $40.9 million at the time of its debut, total net assets of $67.55 million, and volume of $8.45 million, according to SoSoValue data. The ETF rose 7.74% to close at $12.81 per share.
Grayscale converted its existing Chainlink Trust, which was first launched in February 2021, into this ETF. The move is consistent with the company’s broader strategy and will give educational institutions direct access to LINK through their traditional accounts. At the time of reporting, Chainlink’s native token, LINK, was priced at $14.66.
Grayscale CEO Peter Mintzberg said the launch is a “clear signal of broad market demand for exposure to Chainlink,” noting growing institutional investor interest in Oracle Network tokens. $GLNK posted a strong opening day, becoming one of the best-performing new crypto ETFs as it launched amid heightened market activity and regulatory changes.
Links Technical Breakouts and Whale Activity
Technical analysts believe that with the debut of the ETF, there will be a significant pattern change in LINK’s price structure. The token has broken out of a month-long downward channel. Many observers now believe this could help LINK surpass its 2021 highs, as institutional capital flows through $GLNK could be the catalyst for a new record.
On-chain data highlights massive whale accumulation before and after the ETF launch. Lookonchain reported that 39 new wallets have withdrawn 9.94 million LINK (worth $188 million) from Binance since the October market correction. Despite recent volatility, this action confirms the confidence of large holders.
LINK whale accumulation since October 11th. Source: Lookonchain
But not all big investors are benefiting. OnchainLens identified one address that acquired 2.33 million LINKs for $38.86 million over a six-month period. The whale currently faces an unrealized loss of $10.5 million, making the position worth $28.38 million. This case highlights the risk and volatility of LINK accumulation, especially for early buyers at high prices.
Accumulation patterns of individual whales showing unrealized losses. Source: OnchainLens/Nansen
Market dynamics and potential risks
Open interest data since the ETF launch shows a mixed picture. Open interest has risen to around $7 million after the previous drop. This trend indicates renewed trader engagement and increased confidence in LINK’s potential. When price increases and open interest occur together, it usually indicates bullish momentum and active derivatives trading.
But analysts warn that whales that accumulated LINK before the ETF’s launch could soon approach breakeven or profit targets. If these holders sell, selling pressure could limit short-term gains despite strong institutional inflows. Traders are watching LINK as it tests resistance, waiting for more momentum and weighing optimism against a possible reversal.
The ETF’s outlook depends on whether institutional demand meets potential whale sales and continues to attract capital. Both breakouts and corrections remain possible as technical breakouts, whale accumulation, and open interest rise alongside record ETF inflows. Market participants will be watching to see if LINK maintains its upward momentum or if profit-taking prompts a correction before hitting new highs.
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