Chainlink (LINK) is attracting attention from both crypto whales and institutional investors. This signals renewed confidence in the oracle token amid broader market uncertainty.
Latest on-chain data indicates a sharp increase in accumulation activity. Both private whales and large fund management firms are doubling their positions in LINK.
Whales are accumulating Chainlink (LINK) – a new spot ETF is coming
Data from Arkham shows that a single whale withdrew 171,000 LINK (approximately $2.36 million) from Binance on Tuesday. He added nearly 790,000 LINK, acquired over the past month at an average price of $12.72.
This significant accumulation suggests a long-term bullish sentiment. Meanwhile, another investor bets that LINK may perform even better in the coming months.
Derivatives markets also reflect increased speculative interest. OnChain Lens reports that a newly created wallet deposited 5 million USD in USDC on Hyperliquid DEX. They opened leveraged long positions in LINK (5x) and DOGE (10x).
Although the total position is currently valued at 28.2 million USD, it shows a variable loss of approximately 600,000 USD.
This move shows appetite among sophisticated traders for leveraged exposure to LINK despite short-term volatility.
Institutional trust and ETF approval increase LINK's rarity
Institutional accumulation remains the primary driver behind LINK's dynamics. Grayscale's LINK fund recently reached a new all-time high (ATH) in net assets. Data from SoSoValue shows it is approaching 90 million USD, with current assets at 87.15 million USD.
Meanwhile, data from Coinglass shows that Grayscale has maintained 1.31 million LINK over the past two years. This indicates a disciplined 'diamond hand' approach without selling.
The combination of whale accumulation and institutional HODLing contributes to historically low LINK balances on exchanges. Data from CryptoQuant shows fewer tokens on exchanges generally signal scarcity. This could strengthen price support and reduce selling pressure.
Adding to this bullish outlook, Bitwise has received SEC approval to launch a spot ETF fund for Chainlink (CLNK) on NYSE Arca, with trading set to begin this week. This marks Chainlink's first direct entry into U.S. stock markets.
LINK ETF assets will be held by Coinbase Custody and BNY Mellon, providing investors with regulated and easily accessible tools to gain exposure to LINK without directly handling the underlying tokens.
LINK price reaction
The launch of CLNK could further increase institutional inflows and expand the base of LINK holders, potentially driving up Chainlink's price. However, despite these developments, LINK's price has only risen slightly by 0.8% to $13.84 at the time of writing this text.
These events align, creating a favorable environment for LINK:
Whales' accumulation signals confidence among experienced traders.
Grayscale's long-term holding strategy reflects institutional trust in the token.
The launch of a regulated spot ETF fund is likely to open doors for more conservative investors seeking exposure to Chainlink. This could drive additional demand and further reduce exchange liquidity.
As LINK balances on exchanges reach historic lows, and both whales and institutions continue accumulation, the market appears to be positioning for a potential upward move.
However, this bullish fundamental shift toward sustained price growth depends on broader market conditions, including investor appetite for both leveraged and spot exposure.
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