10-Q: Grayscale Chainlink Trust ETF Reports Net Asset Decline

Grayscale Chainlink Trust ETF's Q2 2026 report shows a decrease in net assets driven by LINK price depreciation and operational losses, despite share creations.

Summary

• The Grayscale Chainlink Trust ETF (GLNK) reported a net decrease in net assets of $16,838 thousand for the three months ended June 30, 2026, primarily due to a $16,765 thousand net realized and unrealized loss on its investment in LINK.
• The Trust's net assets decreased by 1% to $72,222 thousand as of June 30, 2026, from $73,816 thousand as of December 31, 2025.
• The fair value of the Trust's investment in LINK decreased from $73,816 thousand to $72,222 thousand during the period.
• Share creations contributed $16,489 thousand in value, while redemptions accounted for $491 thousand.
• The Sponsor's Fee, a related party transaction, amounted to $73 thousand for the three months ended June 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the significant unrealized losses and the decrease in net assets, primarily driven by the depreciation of LINK's price.

Positives

• The Trust saw significant share creations, with approximately 1,990,000 shares issued, valued at $16,489 thousand for the three months ended June 30, 2026.
• The Trust's investment objective is to reflect the value of LINK held, less expenses, providing investors exposure to LINK.
• The Sponsor has committed to waiving a portion of its fee until March 2, 2026, or until the Trust's NAV exceeds $1.0 billion.

Negatives

• The Trust experienced a net realized and unrealized loss of $16,765 thousand on its investment in LINK for the three months ended June 30, 2026.
• The net assets of the Trust decreased by $16,838 thousand for the three months ended June 30, 2026, resulting in a 1% decrease in net assets.
• The fair value of the Trust's LINK holdings decreased from $73,816 thousand to $72,222 thousand.
• The Trust incurred a realized loss of $320 thousand on the sale of LINK to meet redemptions during the three months ended June 30, 2026.
• The price of LINK depreciated from $8.77 per LINK as of March 31, 2026, to $7.20 per LINK as of June 30, 2026.

Risks

• The Trust's investment portfolio is concentrated in LINK, making its net asset value and results of operations directly affected by LINK's price volatility.
• The Trust is exposed to risks specific to LINK and its supporting infrastructure, including market liquidity constraints and operational or cybersecurity risks.
• Forward-looking statements are subject to risks and uncertainties, and actual events or results may differ materially from such statements.

Future Outlook

The filing does not provide specific forward-looking guidance on future financial performance. However, it notes that the Trust's performance is subject to the price of LINK and general market conditions. The Sponsor has committed to waiving a portion of its fee until March 2, 2026, or until the NAV exceeds $1.0 billion.

Management Comments

• The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees.
• As a passive investment vehicle, the Trusts investment objective is for the value of the Shares (based on LINK per Share) to reflect the value of the LINK held by the Trust, determined by reference to the Index Price, less the Trusts expenses and other liabilities.
• The Sponsor has evaluated all subsequent events through the issuance of the financial statements and has noted no other events requiring adjustment or additional disclosure in the financial statements.

Industry Context

StockSavvy.ai notes that the Grayscale Chainlink Trust ETF operates within the digital asset investment product sector, which is highly sensitive to the price movements of underlying cryptocurrencies like Chainlink (LINK). The recent performance reflects broader market trends in digital assets, characterized by volatility and significant price fluctuations.

Comparison to Industry Standards

• The Trust's performance is directly tied to the price of Chainlink (LINK), which has experienced significant volatility. For the twelve months ended June 30, 2026, the average Digital Asset Market Price of LINK was $13.78, with a high of $27.18 and a low of $7.17.
• The Trust's Net Asset Value (NAV) per Share has also been volatile, reflecting LINK's price movements. For the three months ended June 30, 2026, the NAV per Share decreased by 17.99%, while for the six months ended June 30, 2026, it decreased by 41.31%.
• The Trust's performance prior to December 2, 2025, when it uplisted to NYSE Arca, is not directly comparable to periods after that date due to the lack of an ongoing share creation and redemption program on OTC Markets, which led to significant premiums and discounts to NAV.

Legal Proceedings

• There have been no material changes to the Legal Proceedings last reported in the Annual Report on Form 10-K for the year ended December 31, 2025.

Related Party Transactions

• The Trust pays a Sponsors Fee to Grayscale Investments Sponsors, LLC (the Sponsor), calculated as 0.35% of the aggregate value of the Trust's assets, less liabilities.
• For the three months ended June 30, 2026, the Trust incurred Sponsors Fees of $73,000.
• As of June 30, 2026, 6,368 Shares of the Trust were held by related parties.

Stakeholder Impact

• Shareholders are directly impacted by the depreciation of LINK, which has led to a decrease in the Trust's net assets and NAV per Share.
• The Trust's concentration in LINK exposes shareholders to significant volatility and potential losses.
• The ongoing share creation and redemption program on NYSE Arca aims to reduce premiums and discounts to NAV, potentially benefiting shareholders by aligning market price with underlying asset value.

Next Steps

• The Sponsor will continue to administer the Trust and prepare quarterly and annual reports.
• The Trust will continue to issue Shares in Baskets in exchange for LINK deposits and redeem Shares from Authorized Participants.
• The Sponsor will continue to monitor the principal market for LINK and conduct quarterly analyses of trading volume, activity, and price stability.

Key Dates

Recommendation

The Trust's performance is heavily dependent on the volatile price of LINK. While share creations indicate investor interest, the significant unrealized losses and decrease in net assets due to LINK's depreciation warrant caution. The current environment suggests a 'hold' position, awaiting stabilization or recovery in LINK's price and a clearer trend in the Trust's NAV.

Keywords

Chainlink, LINK, Digital Asset, ETF, Grayscale, Cryptocurrency, Investment Trust, Form 10-Q