The cryptocurrency market has opened the new monthly candle bearish, with Bitcoin and other major coins currently in the red.
Bitcoin has lost 5% of its value in the last 24 hours, dropping below the $86k level.
Ether, the leading altcoin by market cap, has also dropped to the $2,800 region after losing nearly 6% of its value.
Chainlink’s LINK (down 6%) is not left behind despite Grayscale announcing the possible launch of the first spot Chainlink ETF in the United States.
Grayscale to launch the first spot Chainlink ETF in the US
Crypto asset management firm Grayscale is set to launch the US’s first spot Chainlink exchange-traded fund this week. This is according to ETF Institute co-founder Nate Geraci.
Geraci revealed this in an X post a few hours ago, stating that Grayscale will convert its Chainlink private trust to an ETF.
This latest development comes as the LINK ETF application from competing crypto asset manager Bitwise is waiting for regulatory approval from the SEC.
Set to launch this week…
First spot link ETF.
Grayscale will be able to uplist/convert Chainlink private trust to ETF.
Geraci’s prediction aligns with the estimate from Bloomberg Intelligence, which predicts Grayscale’s LINK ETF will launch on December 2nd.
Bloomberg senior ETF analyst Eric Balchunas predicted last week that a steady supply of over 100 funds will launch over the next six months.
The fund includes Grayscale’s LINK ETF, which he predicts will launch tomorrow.
Balchunas stated that there are five spot cryptocurrency ETFs launching over the next few days.
The Grayscale Chainlink Trust will be a conversion of the firm’s LINK trust into an ETF, similar to the firm’s other ETFs.
The fund will generate returns to investors by tracking the spot price of LINK, while also allowing investors to take advantage of the cryptocurrency’s staking feature.
Grayscale has been bullish on the Chainlink ecosystem, considering it a critical connective tissue linking the crypto world to the traditional financial markets.
In November, Grayscale launched a spot XRP and Doge ETF, with the firm expected to launch several other altcoin ETFs over the next few months.
LINK could dip below $12 as the market turns bearish
The cryptocurrency market recorded a bullish end to November but began the new month bearish.
The LINK/USD daily chart is bearish and efficient as Chainlink has lost nearly 7% of its value in the last 24 hours.
At press time, LINK is trading at $12.13 but could record further losses as the market remains fragile.
The technical indicators are bearish, suggesting that sellers are currently in control.
The RSI on the daily chart reads 33, below the neutral 50, suggesting that the bearish trend is still strong.
The MACD lines are also within the bearish region, with further selling pressure expected in the near term.
If the selloff continues, LINK could retest the November low of $11.386 over the next few hours. Failure to defend this support level could see LINK dip below $11 for the first time since June.
However, if the bulls reverse the trend, LINK could rally towards the first major resistance level at $13.7.
The inducement liquidity (ILQ) at $14.07 could serve as a magnet for the price in the near term.
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