Are there other items besides the sinking lure that you can pick up and link shows it on screen but you can never see it in your inventory or on the ground?
Are there other hidden items that you can pick up?
Okay.. well, first of all, this is a wrong place to post this.
The sinking lure can't be seen even on a real N64. It's made that way.
And finally, no, there aren't any more invisible items like that.