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Chainlink’s LINK token gains institutional backing with new ETF launch amid cooling trading

A new ETF brings fresh institutional interest to Chainlink’s LINK, but will cooling trading volumes signal a breakout—or a breakdown? Analysts weigh in.

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Chainlink’s LINK token has seen fresh institutional support with the launch of a new ETF, even as trading activity shows signs of cooling. The Bitwise Chainlink ETF (CLNK) began trading on NYSE Arca on 14 January, marking the second US spot ETF to offer direct exposure to the cryptocurrency. Meanwhile, market data reveals a slight dip in both futures and spot volumes, alongside a period of consolidation in LINK’s price movement.

The Bitwise Chainlink ETF, developed by Bitwise Asset Management, received SEC approval for its listing on NYSE Arca. On its first day, the fund recorded $2.59 million in net inflows, $3.24 million in trading volume, and a net asset value of $5.18 million. This launch follows a month of supportive developments for Chainlink, including a draft proposal to classify LINK as a network token under CFTC oversight and the introduction of Confidential Compute, a privacy-focused upgrade.

Trading activity for LINK has softened slightly in recent days. Spot volumes fell by 0.4% to around $618 million, while futures volume dropped 2.8% to $872 million and open interest declined 0.4% to $668.8 million. Despite this, the token’s price has held within a tight range of $13.00 to $14.20, showing low volatility and constructive momentum indicators. At the time of reporting, LINK was trading near $13.84, down 1.5% on the day but up 3.7% over the past week and 8% over the last month. Technical analysis suggests that LINK remains in a consolidation phase, with leverage cooling and volatility tightening. Analysts note that a breakout from its current range could trigger a sharp price movement, though the direction remains uncertain for now.

The introduction of the Bitwise Chainlink ETF expands institutional access to LINK, despite short-term caution in trading. With regulatory clarity improving and technical indicators pointing to potential volatility, the token’s next move will likely depend on whether it breaks above or below its recent price range. For now, market participants are watching closely as consolidation continues.

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