Chainlink, Avalanche, and Dogecoin ETFs Could Be on the Way — Grayscale Moves Closer to Nasdaq Listings

The world of cryptocurrency continues to edge closer to mainstream finance, and a recent move by Grayscale Investments highlights just how quickly this transition is happening. Grayscale, one of the largest digital asset managers in the United States, has formally filed applications with the U.S. Securities and Exchange Commission (SEC) to launch exchange-traded funds (ETFs) tied to Chainlink (LINK), Avalanche (AVAX), and Dogecoin (DOGE).

If approved, these ETFs would trade on the Nasdaq stock exchange, giving traditional investors a much easier way to gain exposure to these digital assets without directly buying and storing tokens themselves. For the crypto industry, this could mark another step toward legitimacy, following the success of Bitcoin and Ethereum ETFs earlier this year.

What Exactly is an ETF?

An ETF, or exchange-traded fund, is an investment product that tracks the price of an underlying asset. For example, a gold ETF tracks the price of gold, allowing investors to buy and sell shares as though they were buying the metal itself. In the same way, crypto ETFs track the value of cryptocurrencies.

The appeal of ETFs lies in their simplicity. Investors don’t need to create crypto wallets, manage private keys, or worry about storage and security. Instead, they can buy ETF shares through traditional brokerage accounts, just like stocks. This opens the door for a much wider pool of investors, from institutions to everyday traders.

Grayscale’s Latest Move

Grayscale already operates several cryptocurrency trusts, but these trusts are not as flexible or liquid as ETFs. By filing with the SEC, the company hopes to convert its existing trusts for Chainlink, Avalanche, and Dogecoin into ETFs that can be traded more freely.

• Chainlink (LINK): Grayscale filed its application on September 5, 2025, proposing the ticker symbol LINK. Chainlink is known as a leading oracle network, providing real-time data feeds that power smart contracts across many blockchains. With over 2.5 billion data feeds delivered to date, it has strong real-world use cases that could appeal to institutional investors.
• Avalanche (AVAX): The filing for Avalanche came on August 22, 2025. Avalanche is a fast, energy-efficient blockchain that supports decentralized finance (DeFi) projects and enterprise applications. According to DeFiLlama, Avalanche’s total value locked (TVL) recently climbed to $1.2 billion, reflecting growing developer and user adoption.
• Dogecoin (DOGE): The Dogecoin filing, submitted on August 15, 2025, envisions a fund with the ticker GDOG. Originally created as a meme, Dogecoin has grown into a massive community-driven cryptocurrency with a market cap of $28 billion. Despite its playful origins, it has remained one of the most actively traded digital assets worldwide.

For security and transparency, Coinbase Custody will manage the underlying assets. Each fund will also rely on cash creation and redemption mechanisms, similar to those used in approved Bitcoin and Ethereum ETFs.

Grayscale’s timing is no coincidence. The filings come during what many analysts describe as a friendlier regulatory environment. Since President Trump’s administration began promoting pro-crypto policies, the SEC has introduced initiatives like Project Crypto (launched in July 2025), which streamlines the process for approving token-based investment products. Grayscale is also not new to this space. The company previously filed for ETFs tied to Solana, XRP, and Litecoin, showing its intent to expand beyond Bitcoin and Ethereum. Its confidence comes from the success of Bitcoin ETFs, which together have already attracted $120 billion in assets under management (AUM).

Market Reactions and Potential Impact

News of the filings had an immediate effect. Chainlink’s token price jumped 3% to $15.20, while Avalanche and Dogecoin also recorded modest gains despite broader market volatility. This suggests that investors see the potential approval of these ETFs as a positive sign for wider adoption.

If approved, analysts believe these ETFs could draw billions of dollars in institutional money. Some even estimate that altcoin ETFs could generate $50 billion in inflows by 2026, especially if they are bundled with other tokenized products. For Chainlink, the ETF could highlight its role in powering smart contracts. For Avalanche, it could showcase its speed and DeFi ecosystem. And for Dogecoin, it would bring more legitimacy to a project often dismissed as a meme.

Hurdles to Overcome

Of course, challenges remain. The SEC has historically been cautious, especially with tokens that are more volatile or lack clear utility. Dogecoin, for example, may face additional scrutiny given its history as a joke currency, even though it now commands serious trading volumes.

On the other hand, Chainlink and Avalanche may have smoother paths due to their enterprise and DeFi use cases, which are easier for regulators to frame as legitimate financial applications. Approval timelines could stretch as long as 240 days, though new legislation like the GENIUS Act may allow for faster reviews. Grayscale’s existing holdings around $50 million in Avalanche and $30 million in Chainlink, provide a ready foundation for these conversions, strengthening its case before regulators.

Finance Meets Blockchain

These ETF filings represent more than just new investment products. They signal a broader shift where traditional finance is increasingly merging with blockchain technology. Nasdaq itself has been exploring tokenized stock trading, which could pair naturally with altcoin ETFs to create hybrid financial products.

For the cryptocurrency industry, this trend offers both opportunity and responsibility. Greater access means more adoption, but it also requires stronger investor protections to guard against volatility and market manipulation.

Final Takeaway

Grayscale’s push to launch ETFs for Chainlink, Avalanche, and Dogecoin could mark a defining moment in the evolution of cryptocurrency investing. By bringing these assets to the Nasdaq, Grayscale is working to make altcoin exposure as simple as buying a stock. If approved, these funds could reshape how institutional and retail investors interact with the crypto market, bridging the gap between traditional finance and decentralized technologies. Yet, approval is not guaranteed, and regulators will carefully weigh the risks of volatility and investor protection before giving the green light.

Still, with billions of dollars potentially flowing into the market, and with altcoins gaining legitimacy through structured financial products, the stage is set for another leap forward in the mainstream adoption of cryptocurrency.