Bitwise Chainlink ETF (CLNK)

Overview

• Type: Exchange-traded product (ETP) organized as a Delaware statutory trust (the Trust).
• Primary objective: Provide exposure to the value of Chainlink held by the Trust, net of operating expenses.
• Sole asset: Chainlink.
• Exchange: Shares listed on NYSE Arca (ticker CLNK).
• Sponsor: Bitwise Investment Advisers, LLC (the Sponsor), a subsidiary of Bitwise Asset Management, Inc. (BAM).
• Trustee: Delaware Trust Company.
• Management model: The Sponsor handles day-to-day administration, including asset purchases and sales, creation/redemption processing, and monitoring service providers. The Sponsor pays all ordinary operating expenses.

Business activities

• Issuance and redemption: The Trust creates and redeems Shares in blocks of 10,000 (a Basket) either in-kind (Chainlink) or cash-settled, with pricing based on the Trust’s NAV per Share.
• Pricing and valuation: Chainlink is valued under a pricing framework tied to a principal market via a third-party vendor. Under U.S. GAAP (ASC 820), the price is treated as a Level 1 input on the measurement date.
• Custody and administration: Chainlink assets are held by the Chainlink Custodian and cash by the Cash Custodian. The Transfer Agent (BNY Mellon) handles creation/redemption settlements. Chainlink is traded and settled through Authorized Participants.
• Fees and expense coverage: The Sponsor pays ordinary expenses of the Trust (except for litigious or extraordinary expenses) in exchange for the Sponsor Fee, which is paid in Chainlink and calculated as a fixed percentage of the Trust’s Chainlink holdings.

Accounting, ownership and governance

• Sponsor and ownership: As of December 31, 2025, BAM owned 100% of the Trust’s outstanding Shares (8 shares total).
• Governance: The Trust has no board of directors; governance is conducted by the Sponsor. Sponsor leadership includes:
  • Hunter Horsley — CEO, President, Treasurer of the Sponsor/BAM
  • Paul “Teddy” Fusaro — COO, Corporate Secretary of the Sponsor; President of BAM
  • James Bebrin III — CFO, Asset Management Products; Principal Financial Officer
  • Additional BAM officers and directors are listed in the governance documents.
• Employees: The Sponsor employed 93 people as of December 31, 2025.
• Indemnifications: Standard indemnifications apply between the Sponsor, Trustee, and indemnified persons as described in the governing documents.
• Tax status: The Trust is a grantor trust for U.S. federal income tax purposes; tax obligations flow through to shareholders.
• Reporting period activity: The financial statements for October 22, 2025 – December 31, 2025 reflect organizational and registration activity, including seed transactions.

Financial snapshot (as of December 31, 2025)

• Cash: $200
• Total assets: $200
• Liabilities: $0
• Net assets: $200
• Shares outstanding: 8
• NAV per share: $25.00
• Net investment income: $0
• Net realized/unrealized gains (during the period): $0
• Net increase in net assets from operations: $0
• Capital share transactions:
  • Creations for Shares issued: $200
  • Redemptions: $0
  • Net increase from capital share transactions: $200
• Net assets, end of period: $200
• Cash flows:
  • Net cash provided by (used in) operating activities: $0
  • Net cash provided by (used in) financing activities: $200
  • Net increase in cash: $200
• Source of seed capital:
  • Seed Shares: 8 shares purchased by BAM on October 22, 2025, at $25 per share for $200.

Fees and fee mechanics

• Sponsor fee rate: 0.34% per annum of the Trust’s Chainlink holdings, paid in Chainlink.
• Effective date: The Sponsor began charging the Sponsor Fee on the Trust’s initial listing date, January 14, 2026.
• Waiver: For the three-month period beginning January 14, 2026 (through April 13, 2026), the Sponsor agreed to waive the Sponsor Fee on the first $500 million of Trust assets.
• Payment mechanics: The Sponsor Fee accrues daily on the prior month’s balance, is calculated in Chainlink, and is paid on the first business day of each month. The Sponsor may temporarily waive all or part of the Sponsor Fee at its discretion for defined periods.
• Expense coverage: In exchange for the Sponsor Fee, the Sponsor assumes and pays ordinary Trust expenses, including trustee fees, service provider fees, listing fees, SEC fees, audit fees, and ordinary legal expenses.

Creation and redemption mechanics

• Basket size: Blocks of 10,000 Shares (a Basket) are created or redeemed at NAV.
• In-kind vs cash: In-kind creations/redemptions involve Chainlink transfers; cash creations/redemptions involve USD cash plus any per-order fee.
• Authorized Participants: Only Authorized Participants may create or redeem Baskets; they deposit or receive Chainlink per Basket or cash per Basket Amount.
• Transfer agent fee: An Authorized Participant is charged a non-refundable transfer agent fee per order; the Sponsor may modify this fee.

Post-period events (January 13–14, 2026)

• The Trust’s registration statement became effective and Shares began trading on NYSE Arca on January 14, 2026.
• BAM redeemed all eight Seed Shares for $200.
• Bitwise Investment Manager, LLC (BIM), an affiliate of the Sponsor, purchased the initial 100,000 Seed Baskets for $2,500,000 ($25 per share) and acted as the statutory underwriter for that initial purchase. BIM sold those 100,000 Seed Shares for cash on January 14, 2026.
• Beginning January 14, 2026, the Sponsor began charging the Sponsor Fee (0.34% per annum) on Chainlink holdings, subject to the temporary waiver described above.

Conclusion

Bitwise Chainlink ETF is an ETP structured as a Delaware statutory trust that holds Chainlink to provide market exposure to Chainlink’s price via NYSE Arca. The Sponsor administers the Trust, pays ordinary expenses in exchange for a 0.34% per annum fee payable in Chainlink, and implemented a temporary fee waiver on the first $500 million of assets following the January 14, 2026 listing. As of December 31, 2025, the Trust had $200 in cash, $200 in net assets, and 8 shares outstanding, all owned by BAM.