TL;DR
- Bitwise launched a Chainlink ETP; Matt Hougan said its moderate reception reflects an incomplete understanding of the network’s role in crypto infrastructure.
- The CIO described LINK as a software platform that connects blockchains and external systems, providing key services for stablecoins, DeFi, and asset tokenization.
- Chainlink holds between 50% and nearly 100% market share across several verticals and is used by DTCC, SWIFT, JPMorgan, Visa, Fidelity, and other institutional players.
Bitwise launched a Chainlink ETP after completing its registration without public promotion. The product began trading with moderate volumes and tight spreads, well below the flows seen in Bitcoin ETPs. Matt Hougan, CIO of Bitwise, said the market’s initial response reflects a limited understanding of the role LINK plays within crypto infrastructure.
Hougan described Chainlink as one of the most important and least understood assets in the sector. He said reducing the project to a “data oracle” fails to capture its operational scope or its weight within on-chain financial systems. The network operates as a software platform that connects blockchains to one another and to the external world through critical services for financial applications.
The Fundamental Role of Chainlink in the Crypto Industry
The network provides price feeds, cross-chain interoperability, proof of reserves, process automation, and tools related to compliance and execution. These services support operations across stablecoins, DeFi protocols, prediction markets, and asset tokenization frameworks. Many stablecoins rely on Chainlink for pricing, reserves, and cross-network transfers. Several tokenization projects use it for valuation, servicing, and regulatory processes. Multiple DeFi applications depend on its feeds for smart contract execution.
Hougan said Chainlink holds dominant market shares across several of these verticals. In different segments, its share ranges from 50% to nearly 100%. The infrastructure is already used by institutional and traditional financial market participants, including DTCC, SWIFT, JPMorgan, BNP Paribas, Visa, Mastercard, Euroclear, Fidelity, Franklin Templeton, FTSE Russell, Coinbase, Aave, Deutsche Börse, and Polymarket.
Market Context and Forward Outlook
Chainlink ranks eleventh by market capitalization, with a value near $10 billion. According to Hougan, the project’s size contrasts with its level of institutional adoption and its broad presence across the main value flows of the crypto ecosystem. Bitwise’s ETP aims to provide direct exposure to that infrastructure layer.
In the market, LINK recorded volatility over the past month. After trading sideways in late December, the token rose in early January and moved above $14. It later corrected and returned to the $12.3 area. Santiment data show that wallets among the top one hundred holders increased their balances during a dip below $13, while retail addresses reduced their exposure.
Hougan said institutional demand for Chainlink-linked products will grow as stablecoins, tokenized assets, and financial services continue to migrate toward on-chain systems.
