Bitwise Asset Management, a top crypto management firm, has inked a collaboration with Decentralized Finance (DeFi) lending protocol Morpho. The crypto firm announced the development on X, stating that both companies plan to launch non-custodial on-chain vaults targeted at generating yield. Bitwise Demonstrates Interest in On-Chain Vaults According to the announcement on X, Bitwise acknowledged that vaults are an integral part of finance, which is fast-moving on-chain. It noted that the first vault wil ...

Core Insights - Chainlink (LINK) has seen a 4% increase in value over the past 24 hours, driven by two significant catalysts: the launch of Bitwise's spot Chainlink ETF and a Senate Banking Committee draft bill granting LINK commodity status similar to Bitcoin [1][4] Group 1: Bitwise Chainlink ETF Launch - Bitwise has received approval to list its spot Chainlink ETF on NYSE Arca, with trading expected to commence this week [2] - The ETF will offer a full fee waiver for the first three months, covering up to $500 million in assets, after which a management fee of 0.34% will apply [2] - The fund launched with $2.5 million in seed capital, equivalent to 100,000 shares priced at $25 each [2] - Coinbase Custody will manage the LINK holdings, while BNY Mellon will handle cash custody [2] Group 2: Senate Bill and Regulatory Status - The Senate Banking Committee's draft bill classifies Chainlink as a commodity under CFTC oversight, similar to Bitcoin, thus avoiding SEC regulations [4] - LINK is recognized as a "non-ancillary asset" due to the existence of a Chainlink ETF trading on major exchanges prior to January 1 [4] - This classification reduces regulatory uncertainty and eliminates SEC disclosure requirements for LINK [4] Group 3: Market Activity and Demand - Following the ETF announcement, daily trading volume for LINK surged nearly 45%, and futures open interest rose to $665 million, indicating new positions rather than short-term trades [3] - Grayscale's Chainlink ETF has reported inflows exceeding $62 million, reflecting strong institutional demand [5] - Bitwise manages approximately $15 billion in crypto assets and is expanding its presence in regulated altcoin ETFs, which may further enhance institutional interest in LINK [5][6] Group 4: Technical Analysis - LINK is attempting to break out of a significant triangle pattern that has constrained its price since November 2024, with critical resistance located at $14-$15 [9][10] - A breakout above $15 would signal a potential upward movement, with targets set at $16, $18, and ultimately $24-$30 [11][12] - Support levels are identified at $12.90-$13.00, with a break below $12 potentially invalidating the triangle pattern [13]