In order to offer transparency regarding proof of reserves for its newly launched Spot Ethereum exchange-traded fund, 21Shares has integrated Chainlink.
Leading cryptocurrency exchange-traded product issuer 21Shares made the integration announcement on July 29. The company stated that it will use Chainlink’s technology to provide proof of reserve data for the 21Shares Core Ethereum ETF, which is traded under the ticker CETH.
One of the spot Ethereum ETFs that debuted last week after receiving final permission from the U.S. Securities and Exchange Commission is 21Shares’ CETH. Johann Eid, chief business officer at Chainlink Labs, said:
“We’re excited to further our collaboration with 21Shares and support a major milestone in our industry’s history by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve”
According to Eid, Chainlink’s objective of promoting greater cryptocurrency usage includes the partnership. This is especially true for financial institutions hoping to gain traction in the market through tokenization.
CETH Holder to Access Data on ETH Reserves
In a blog post, 21Shares stated that it selected Chainlink as its decentralized computing platform because of the latter’s notable industry traction—since its founding, it has allowed for the transfer of over $12 trillion in value on-chain.
With the help of this integration, holders of CETH will be able to access the underlying ETH reserves and benefit from a sense of security and confidence. This partnership attempts to improve two important areas of the market: ensuring asset integrity and investor trust.
Remarkably, 21Shares currently uses Chainlink’s PoR function to improve and supply transparency for their spot Bitcoin ETF, ARKB. Launched in January 2024, ARKB, issued by ARK 21Shares, presently has around $3.2 billion in assets under management. SosoValue data indicates that ARKB has received cumulative net inflows of $2.6 billion thus far.
