What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-12 compared with 2026-05-08 · 43 added, 18 removed, 97 unchanged (39% of the section changed)

40 unchanged sentences

Results of Operations

For the Period from January 13, 2026 (commencement of operations) to March 31, 2026*

For the three months ended March 31, 2026

For the three months ended June 30, 2026 and for the period from January 13, 2026 (commencement of operations) to June 30, 2026*

For the three months ended June 30, 2026*

For the period January 13, 2026 (commencement of operations) through June 30, 2026*

Net investment loss

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Net assets in the above table are calculated in accordance with U.S.

GAAP based on the principal market price for Chainlink that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.

During the period ended March 31, 2026, the Trust's net assets increased from $200 on January 13, 2026 (commencement of operations) to $15,481,264 on March 31, 2026.

GAAP based on the principal market price for Chainlink that the Trust considered its principal market, as of 4:00 p.m.

ET on the valuation date.

Three months ended June 30, 2026*

During the period ended June 30, 2026, the Trust's net assets increased from $15,481,264 on March 31, 2026 to $19,912,357 on June 30, 2026.

The increase in the Trust's net assets resulted primarily from additions of approximately 1,001,198 Chainlink with a value of $8,989,917 in connection with Share creations during the period.

For the period, there were no dispositions of Chainlink to pay the Sponsor Fee or for the redemption of Shares.

Net realized and change in unrealized loss on investment in Chainlink for the three months ended March 31, 2026 was $(2,842,056), which included a change in unrealized depreciation on investment in Chainlink of $(2,842,056).

There were no realized gains or losses for sales of Chainlink for the redemption of Shares or for the transfer of Chainlink to pay the Sponsor Fee.

Net realized and change in unrealized loss on investment in Chainlink for the period resulted primarily from Chainlink price depreciation from $13.73 on January 13, 2026 (commencement of operations) to $8.77 on March 31, 2026.

Net decrease in net assets resulting from operations for the three months ended March 31, 2026 was $(2,842,056), which consisted solely of the net realized and unrealized loss on investment in Chainlink.

The Sponsor fee of $(6,981) was waived in its entirety for the period, as the Sponsor has agreed to waive the entire Sponsor Fee on the first $500 million of Trust assets for the three-month period starting on January 14, 2026, the day the Shares were initially listed on the Exchange, through April 13, 2026.

Additions were partially offset by dispositions to the Trust of approximately (1,051) Chainlink to pay the Sponsor Fee with a value of $(9,483) during the period.

Net realized and change in unrealized loss on investment in Chainlink for the three months ended June 30, 2026 was $(4,543,574), which included a realized gain of $1,003 on the transfer of Chainlink to pay the Sponsor Fee, and a change in unrealized depreciation on investment in Chainlink of $(4,544,577).

There were no realized gains or losses for sales of Chainlink for the redemption of Shares.

Net realized and change in unrealized loss on investment in Chainlink for the period resulted primarily from Chainlink price depreciation from $8.77 on March 31, 2026 to $7.20 on June 30, 2026.

Net decrease in net assets resulting from operations for the three months ended June 30, 2026 was $(4,558,824), which consisted of the net realized and unrealized loss on investment in Chainlink less the Sponsor fee of $(17,154) of which $1,904 was waived.

Six months ended June 30, 2026*

During the period ended June 30, 2026, the Trust's net assets increased from $200 on January 13, 2026 (commencement of operations) to $19,912,357 on June 30, 2026.

The increase in the Trust's net assets resulted primarily from additions of approximately 2,767,457 Chainlink with a value of $27,313,237 in connection with Share creations during the period.

Additions were partially offset by dispositions by the Trust of approximately (1,051) Chainlink to pay the Sponsor Fee with a value of $(9,483) during the period.

Net realized and change in unrealized loss on investment in Chainlink for the six months ended June 30, 2026 was $(7,386,630), which included a realized gain of $1,003 on the transfer of Chainlink to pay the Sponsor Fee, and a change in unrealized depreciation on investment in Chainlink of $(7,386,633).

There were no realized gains or losses for sales of Chainlink for the redemption of Shares.

Net decrease in net assets resulting from operations for the six months ended June 30, 2026 was $(7,400,880), which consisted of net realized and unrealized loss on investment in Chainlink less the Sponsor fee of $(24,135) of which $8,885 was waived.

For the period January 13, 2026 (commencement of

operations) through June 30, 2026, the Sponsor has agreed to waive the entire Sponsor Fee on the first $500 million of Trust assets for the three-month period starting on January 14, 2026, the day the Shares were initially listed on the Exchange, through April 13, 2026.

* No comparative period information yet available as the Trust commenced operations on January 13, 2026.

As of March 31, 2026, the Trust held a net closing balance of 1,766,259.4192 Chainlink with a total market value of $15,489,071 based on the LINKUSD_NY price of $8.76942, used to determine the Trust's NAV.

As of June 30, 2026, the Trust held a net closing balance of 2,766,406.1198 Chainlink with a total market value of $19,915,330 based on the LINKUSD_NY price of $7.20, used to determine the Trust's NAV.

The total market value of the Trust's Chainlink held was $19,918,124 based on the price of Chainlink (Lukka Prime Rate) in the principal market (Coinbase) of $7.20, used to determine the Trust's Principal Market NAV.

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Any remaining cash will be distributed back to the Cash Custodian.

The Sponsor expects that the Trust will have an immaterial amount of cash flow from its operations and that its cash balance will be insignificant at the end

of each reporting period.

The Sponsor expects that the Trust will have an immaterial amount of cash flow from its operations and that its cash balance will be insignificant at the end of each reporting period.

The Trust’s only sources of cash are proceeds from the sale of Baskets and Chainlink.

5 unchanged sentences

Off-Balance Sheet Arrangements and Contractual Obligations

As of March 31, 2026, the Trust has not used, nor does it expect to use in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Trust.

As of June 30, 2026, the Trust has not used, nor does it expect to use in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Trust.

While the Trust’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Trust’s financial position.

1 unchanged sentence

As such, the Sponsor cannot anticipate the payment amounts that will be required under these arrangements for future periods since the Trust's holdings of Chainlink will vary in the normal course of business operations.

No material changes have occurred during the period from January 13, 2026 (commencement of operations) through June 30, 2026.

Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with U.S.

The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations.

These estimates and assumptions affect the Trust’s application of accounting policies.

Below is a summary of accounting policies on cash, investment valuation and investment company considerations.

There were no material estimates involving a significant level of estimation uncertainty that had or are reasonably likely to have had a material impact on the Trust’s financial condition used in the preparation of

the financial statements.

In addition, please refer to Note 2 to the Financial Statements included in this report for further discussion of the Trust’s accounting policies.

Generally, the Trust does not intend to hold any cash.

Cash includes non-interest-bearing unrestricted cash with one institution.

Cash in a bank deposit account, at times, may exceed U.S.

federally insured limits.

The Trust has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.

Investment Valuation - Principal Market Net Asset Value ("NAV")

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sorts these Digital Asset Markets from high to low by market-based volume and level of activity of Chainlink traded on each Digital Asset Market.

For the period ended March 31, 2026, this sort was performed for Digital Asset Markets for the period mid-February through mid-March 2026.

For the six months ended June 30, 2026, this sort was performed for Digital Asset Markets for the period mid-May through mid-June 2026.

Third, Lukka, Inc.

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then selects a Digital Asset Market as its principal market based on the highest market-based volume level of activity and price stability in comparison to the other Digital Asset Markets on the list.

As of March 31, 2026, Lukka, Inc.

As of June 30, 2026, Lukka, Inc.

included Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Bybit, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex as its primary Exchange Markets in consideration.

At March 31, 2026, the principal market and the principal market price for Chainlink, which is composed of the majority of the Trust’s assets as of March 31, 2026, was Coinbase with a price of $8.77.

At June 30, 2026, the principal market and the principal market price for Chainlink, which is composed of the majority of the Trust’s assets as of June 30, 2026, was Coinbase with a price of $7.20.

The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust's determination of its principal market.

The cost basis of the Chainlink received by the Trust in connection with a creation order is recorded by the Trust at the fair value of Chainlink at 4:00 p.m., New York time, on the creation date for financial reporting purposes.

The cost basis of the Chainlink received by the Trust in connection with a creation order is recorded by the Trust at the fair value of Chainlink at 4:00 p.m.

ET on the creation date for financial reporting purposes.

The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis