The latest Chainlink ETF news has sparked renewed interest in LINK, with Bitwise Asset Management filing to launch the first U.S.-based spot Chainlink ETF. Despite a recent price slump, the announcement helped LINK rebound 5% from recent lows, suggesting growing investor optimism.

Bitwise Targets First U.S. Spot Chainlink ETF

Bitwise Asset Management has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission seeking approval for a spot Chainlink ETF. If approved, this would be the first fund in the country offering direct exposure to Chainlink’s native token, LINK. The proposed ETF will store its assets with Coinbase Custody, a prominent player in digital asset safekeeping.

This filing is part of a larger trend where asset managers are moving toward developing a range of cryptocurrency ETFs. Other applications include SUI and altcoin-focused funds, reflecting a regulatory shift under the Trump administration that has reduced previous hurdles for crypto ETF approval. These initiatives follow the successful introduction of bitcoin (BTC) and ether (ETH) ETFs in the U.S.

LINK Sees Short-Term Price Lift After ETF Filing

Following the ETF announcement, LINK’s price bounced by 5% from its overnight lows. According to CoinDesk data, the token experienced a sharp drop earlier in the day but recovered between 10:00 and 11:00 UTC. During this hour, LINK rose from $23.02 to $23.54 on a volume spike totaling 3.35 million units, signaling renewed buyer interest possibly triggered by the filing news.

Despite this recovery, LINK was still down 1.6% over the past 24 hours. Technical models indicate that the broader crypto market is currently facing a period of consolidation, keeping LINK under pressure. Repeating this pattern consistently, LINK attempted to stabilize above the psychological support level of $23.00.

What Chainlink’s Technical Indicators Are Showing

Researchers at CoinDesk analyzed LINK’s trading data and identified signs of persistent bearish momentum despite the recent rally. Several core metrics reveal critical resistance levels and price sensitivity:

• LINK dropped by 4.67% from $24.61 to $23.46 in the 24 hours from Aug. 25 12:00 to Aug. 26 11:00 UTC.
• The price moved within a $1.84 range, with a session high of $24.81 and a low of $22.90.
• Trading volume surged to 6.58 million units, well above the 24-hour average of 2.29 million.
• Technical resistance stands at approximately $24.30, while solid support has surfaced near the $23.00 level.
• The inability to hold above $24.00 may indicate bearish continuation.
• A technical breakdown below $23.40 suggests increased likelihood of testing the $23.00 support again.

Line chart showing Chainlink’s price activity after Bitwise’s ETF filing news, highlighting critical support and resistance levels.

Investor Outlook for LINK and ETF Market

While LINK experienced a short-term bounce, continued downward pressure suggests that investor sentiment remains cautious. Market positioning appears to hinge on whether LINK can reclaim the $24.00 mark, which would signal a potential bullish shift. For now, the volume-driven price increase may be reflective of oversold conditions attracting buyers, rather than indicating a full trend reversal.

Related: Chainlink Gain Overshadows XRP

Still, the introduction of a spot Chainlink ETF marks a significant development for altcoins and could pave the way for broader adoption of LINK in institutional portfolios. As regulatory pathways continue to clear under current policy, more issuers may pursue crypto ETFs focused on alternative tokens beyond bitcoin and ether.