ChainLink: Link's collapse in price has seriously dragged down the growth of gray ETF

The quarterly performance of the ETF market has been uneven, and the growth of ChainLink single asset funds has been blocked.

The ETF market is experiencing a mixed quarter, and some products are unable to maintain growth momentum. ChainLink's case is a microcosm: its fund's value relies entirely on a single asset. This product, launched only by Grayscale, will be launched on NYSE Arca in December 2025 and initially had strong capital inflows. But since then, the decline in LINK's price has caused its net asset value to shrink and net asset growth has slowed. The latest quarterly report confirmed this apparent slowdown, but did not show a massive investor withdrawal.

Brief overview

Grayscale's ChainLink ETF has net assets of US$72.2 million.
LINK fell 18% in the second quarter.
GLNK reported an unrealized loss of approximately US$16.4 million.
Despite new inflows, the Fund's asset size remained largely unchanged. [TAG Grayscale charges an annual fee of 0.35% for the ETF.

ChainLink's Q2 Dilemma

On August 7, Grayscale filed Form 10-Q with the U.S. Securities and Exchange Commission. The document involves Chainlink Trust, which was transformed into an ETF in December 2025 with the trading symbol GLNK. As of June 30, the fund's net asset value was $72.2 million, similar to the $73 million level recorded in April, although inflows had been previously observed. The report mainly shows the impact of falling prices on the overall value of products. At the end of the second quarter, the token price was US$7.25, compared to US$8.77 at the time of filing in the previous quarter in May. According to data provided by Grayscale, the decline reached 18% in three months. The decline reduced the fund's net asset value per share to $6.38. Grayscale also estimates that its LINK holdings incurred unrealized losses of approximately $16.4 million. However, the number of tokens held remained stable during this period.

LINK Price Decline Limits Fund Growth

The way GLNK operates directly explains the change, as the product relies on only a single asset and therefore lacks decentralization to cushion the impact of LINK's decline. When the price falls, the value of the fund's positions decreases mechanically. This correlation is particularly evident when new capital inflows are no longer sufficient to offset market declines. This happened in the second quarter: despite capital injections, net assets remained almost unchanged. The ChainLink network provides external data and price information for smart contracts on Ethereum and other blockchains. Since GLNK entered the U.S. market, the development of ChainLink has been volatile. In this context, the altcoin market related to on-chain infrastructure is also going through difficult times. The decline in LINK's price directly dragged down the value of the fund, while the number of tokens held remained stable during the quarter.

Slowing down significantly after a strong start

According to reported data, the fund showed rapid growth momentum at the beginning of its listing. GLNK attracted $41 million in inflows on its first day of trading, and its assets under management reached approximately $64 million in less than 48 hours. In April, that amount rose to approximately $73 million, confirming an initial increase. The data had triggered higher expectations for the rest of the year. Some estimates have predicted asset sizes of between $150 million and $300 million by mid-2026. In a more optimistic scenario, these forecasts could reach $400 million to $600 million. However, the second quarter report showed that this trajectory had not been achieved. Net assets currently stand at $72.2 million, well below the most conservative growth expectations. ChainLink retains institutional exposure through GLNK, but the fund's growth has stalled. The document also provides important information about investors 'capital flows. The stability of the number of tokens held suggests that the slowdown in growth is not due to large-scale redemptions. The inflow of new funds was affected by the decline in token prices. The current asset level mainly reflects the impact of market effects during the observation period.

Costs are reduced, but structures are still at risk

Grayscale charges an annual fee of 0.35% on GLNK assets, which is consistent with the rate set when the trust was transformed into an ETF in December 2025. Before the transition, the private structure charged qualified investors a 2.5% fee. Grayscale has also temporarily waived some fees until early March 2026, a move designed to accommodate the transition to a new listing structure. For the six months ended June 30, promoter fees were approximately $136,000. This amount corresponds to the published annual rate and is calculated based on the average net assets of the fund. This expense is relatively low compared to the $16.4 million unrealized loss recorded in the second quarter. However, these numbers show the unique way crypto ETFs that focus on a single asset operate. The structure reduces fees but still retains direct exposure to token price movements. As a result, ChainLink products continue to exist on the market through a product whose performance is closely related to LINK. Its evolution remains related to the same parameters observed since the beginning of the year. The next development of net asset value will depend on the combined effect of new capital inflows and price changes. If tokens continue to be under pressure, fund growth may slow further. Conversely, market recovery could quickly change the value of assets held. The next quarterly report will mainly measure whether GLNK regains growth momentum or remains near current levels.