Bitwise Chainlink ETF Liquidation Value

Bitwise Chainlink ETF (CLNK) is a Delaware statutory trust operating as a grantor trust and investment company under ASC 946. It commenced operations January 13, 2026, and this 10-Q covers the period January 13 through March 31, 2026. No prior comparable period exists. The trust's sole asset is Chainlink (LINK) tokens held in custody at Coinbase Custody Trust Company, LLC. Under a liquidation lens, the recovery posture is straightforward: total assets equal $15.48M, consisting entirely of Chainlink at fair value (Principal Market NAV per Coinbase/Lukka Prime Rate of $8.765/token), with zero reported liabilities. Net assets equal total assets at $15.48M, and NAV per share is $15.96 against an initial issuance price of $25.00, reflecting a 36.2% decline from inception driven entirely by Chainlink price depreciation from $13.73 to $8.77 over the period. Cost basis for the 1,766,259 tokens held is $18.32M, versus fair value of $15.48M, representing an unrealized depreciation of $2.84M on the investment position. The liquidation haircut question is non-standard here: unlike traditional assets, Chainlink tokens are crypto assets with significant market liquidity risk and price volatility. Under a standard liquidation framework, the sole asset would require a market-execution haircut reflecting the concentration and thin institutional depth for a position of this size in LINK. The filing does not disclose any hedging, leverage, or debt. The trust has no operating liabilities, no lease obligations, no pension, and no deferred revenue. The Sponsor Fee (0.34% per annum) was fully waived for the period on assets up to $500M; no fee accrual is on the balance sheet. Cash at period end is zero. The trust is extremely early-stage with 970,000 shares outstanding and $15.5M in net assets, representing a micro-scale product. No prior filing balance sheet is available for comparison as this is the inaugural quarter.