21Shares Utilizes Chainlink for Ethereum ETF Proof of Reserve
21Shares has recently incorporated Chainlink technology into its newly launched spot Ethereum exchange-traded fund to ensure transparency regarding proof of reserves.
The announcement of this integration was made by 21Shares, a prominent issuer of crypto exchange-traded products, on July 29. The company highlighted that it will utilize Chainlink’s technology, known as LINK, to provide access to proof of reserve data for the 21Shares Core Ethereum ETF, which is traded under the ticker CETH.
CETH is one of the spot Ethereum ETFs that were introduced last week after receiving final approval from the U.S. Securities and Exchange Commission.
Johann Eid, the chief business officer at Chainlink Labs, expressed enthusiasm about the collaboration with 21Shares and emphasized the significance of bringing advanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. He mentioned that this partnership aligns with Chainlink’s objective of promoting wider crypto adoption, especially among financial institutions seeking to venture into the sector through tokenization.
In a blog post, 21Shares explained that they selected Chainlink as their decentralized computing platform due to its substantial industry presence, facilitating over $12 trillion in on-chain value transfers since its inception.
The integration of Chainlink technology aims to provide reassurance and trust to CETH holders by enabling them to utilize the proof of reserve feature to view the underlying ETH reserves. Enhancing asset integrity and investor confidence are crucial aspects of the market that this collaboration seeks to bolster.
It is worth noting that 21Shares already utilizes Chainlink’s Proof of Reserve feature to enhance transparency for its spot Bitcoin ETF ARKB. Launched by ARK 21Shares in January 2024, ARKB currently manages approximately $3.2 billion in assets.
According to data from SosoValue, ARKB has received cumulative net inflows of $2.6 billion to date.
This strategic move by 21Shares to integrate Chainlink technology underscores the company’s commitment to transparency and reliability in its ETF offerings, ultimately aiming to instill confidence and trust among investors in the crypto market.
