Recently, the cryptocurrency market has seen new developments. Bitwise has submitted an S-1 prospectus, paving the way for the issuance of a LINK token ETF. This move has triggered an immediate market response, with the price of LINK rising about 5% in the short term. However, experts point out that this is only the beginning of a long approval process.

In fact, there is still a long way to go before the ETF is officially approved. Bitwise has not yet submitted the crucial 19b-4 form and has not disclosed important details such as exchanges and fees. According to industry analysis, the SEC's review may last until the first quarter of 2026.

Nevertheless, the potential impact of the LINK ETF should not be underestimated. Once approved, it will open the door for traditional financial institutions such as pension funds and sovereign funds to invest in LINK. These institutions manage a massive amount of assets, and even a small allocation to LINK could bring in billions of dollars in incremental funds, providing significant support for the price of LINK.

However, this prospect also faces many uncertainties. First, the SEC's regulatory stance on non-payment function tokens is still unclear and may delay or reject applications on the grounds that oracles are investment contracts. Secondly, there are other encryption currency ETFs waiting for approval at the same time, which may distract market attention. Finally, if the macroeconomic environment tightens by the end of 2025, the willingness of new capital to enter the market may decrease, weakening the potential benefits brought by ETFs.

Overall, the application for the LINK ETF has opened a new stage filled with opportunities and challenges. Investors need to closely monitor regulatory trends and market changes, rationally view short-term fluctuations, and pay attention to long-term development prospects.