Business Description

—Overview of the Chainlink Industry and Market—LINK Value—The Index and the Index Price.” Although the Index is designed to accurately capture the market price of LINK, third parties may be able to purchase and sell LINK on public or private markets not included among the Constituent Trading Platforms of the Index, and such transactions may take place at prices materially higher or lower than the Index Price. Moreover, there may be variances in the prices of LINK on the various Digital Asset Trading Platforms, including as a result of differences in fee structures or administrative procedures on different Digital Asset Trading Platforms. For example, based on data provided by the Index Provider, on any given day during the year ended December 31, 2025, the maximum differential between the 4:00 p.m., New York time spot price of any single Digital Asset Trading Platform included in the Index and the Index Price was 18.82% and the average of the maximum differentials of the 4:00 p.m., New York time spot price of each Digital Asset Trading Platform included in the Index and the Index Price was 2.36%. During this same period, the average differential between the 4:00 p.m., New York time spot prices of all the Digital Asset Trading Platforms included in the Index and the Index Price was 0.01%. All Digital Asset Trading Platforms that were included in the Index throughout the period were considered in this analysis. To the extent such prices differ materially from the Index Price, investors may lose confidence in the Shares’ ability to track the market price of LINK, which could adversely affect the value of the Shares. A decline in the adoption of LINK or the Chainlink Network could negatively impact the Trust. The Sponsor will not have any strategy relating to the development of LINK and the Chainlink Network. However, a lack of expansion in usage of LINK and the Chainlink Network could adversely affect an investment in Shares. The further development and acceptance of the Chainlink Network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development or acceptance or usage of the Chainlink Network may adversely affect the price of LINK and therefore an investment in the Shares. The further adoption of LINK will require growth of the Chainlink Network. Adoption of LINK will also require an accommodating regulatory environment. The use of digital assets to, among other things, buy and sell goods or services or facilitate cross-border payments is part of a new and rapidly evolving industry that employs digital assets based upon computer-generated mathematical and/or cryptographic protocols. 65 The Chainlink Network is a prominent, but not unique, part of this industry. The growth of this industry is subject to a high degree of uncertainty, as new assets and technological innovations continue to develop and evolve. In addition, there is no assurance that LINK will maintain its value over the long term. The price of LINK is subject to risks related to its usage. Even if growth in Chainlink Network adoption occurs in the near or medium term, there is no assurance that LINK usage will continue to grow over the long term. A contraction in use of LINK may result in increased volatility or a reduction in the price of LINK, which would adversely impact the value of the Shares. The Index Price used to calculate the value of the Trust’s LINK may be volatile, and purchasing and selling activity in the Digital Asset Markets associated with Basket creations and redemptions may affect the Index Price and Share trading prices, adversely affecting the value of the Shares. The price of LINK on public Digital Asset Trading Platforms has a very limited history, and during this history, LINK prices on the Digital Asset Markets more generally, and on Digital Asset Trading Platforms individually, have been volatile and subject to influence by many factors, including operational interruptions. While the Index is designed to limit exposure to the interruption of individual Digital Asset Trading Platforms, the Index Price, and the price of LINK generally, remains subject to volatility experienced by Digital Asset Trading Platforms, and such volatility could adversely affect the value of the Shares.…