21Shares Boosts Ethereum ETF Transparency With Chainlink’s PoR Integration

Asset management firm 21Shares has taken a significant step to enhance the transparency of its Core Ethereum ETF (CETH) by integrating Chainlink’s industry-standard Proof of Reserve (PoR). The collaboration aims to provide investors with clear visibility into the Ethereum reserves backing CETH, thereby fostering greater trust and confidence.

Building Investors’ Confidence

21Shares chose Chainlink for its impressive track record of enabling over $12 trillion in value for on-chain markets. The integration uses Chainlink’s Proof of Reserve solution to provide real-time and historical data on ETH reserves. 

It pulls data directly from Coinbase through an off-chain feed. This setup ensures the transparency and security of the holdings, maintains asset integrity, and builds investor trust.

The use of Chainlink’s technology ensures that the reserves backing the Ethereum ETF are always verifiable and secure. As the crypto market continues to grow, such measures are vital in building confidence among investors and promoting the adoption of digital assets on a broader scale.

Earlier this year, 21Shares integrated Chainlink’s Proof of Reserve to improve the transparency of Bitcoin reserves backing the ARK 21Shares Bitcoin ETF (ARKB). The ETF, which launched in January, currently manages $3.2 billion in assets. 

Promoting Crypto Adoption

Johann Eid, Chief Business Officer of Chainlink Labs, expressed enthusiasm about the collaboration with 21Shares. He highlighted the milestone as a significant advancement in enhancing transparency in the industry. “21Shares is playing an important role in supporting the adoption of digital assets,” he stated.

Similarly, Ophelia Snyder, co-founder and president of 21Shares, emphasized the importance of US approval for a spot Ethereum ETF as a testament to crypto’s global momentum and adoption. She noted that Chainlink’s PoR had already significantly improved the transparency of their spot Bitcoin ETP, making it an obvious choice for their spot Ethereum ETP, CETH.

Snyder stated that 21Shares’ mission is to bridge the gap between traditional finance and decentralized finance, and the latest integration is a crucial step toward achieving that goal. With this move, 21Shares demonstrates its commitment to transparency and investor trust.