21Shares recently announced a significant integration with Chainlink to bring transparency to its newly launched spot Ethereum exchange-traded fund. This move is aimed at providing proof of reserves for investors in the 21Shares Core Ethereum ETF, known as CETH.
The integration with Chainlink’s technology will allow investors to access data on the reserves backing the CETH fund, offering a level of transparency and assurance to holders. This partnership marks a milestone in the industry, as it enhances trust and confidence in the market.
Chainlink, a decentralized computing platform, has a strong track record in the industry, facilitating over $12 trillion in on-chain value transfer. By leveraging Chainlink’s Proof of Reserve feature, 21Shares is taking steps to ensure the integrity of its assets and boost investor trust.
This collaboration is in line with Chainlink’s broader goal of promoting crypto adoption, especially among financial institutions interested in venturing into tokenization. The partnership with 21Shares represents a significant step towards achieving this objective and driving further innovation in the space.
It’s worth noting that 21Shares is not new to utilizing Chainlink’s Proof of Reserve feature. The company already leverages this technology for its spot Bitcoin ETF ARKB, which was launched in January 2024 and currently holds around $3.2 billion in assets under management. With $2.6 billion in cumulative net inflows, ARKB has been a successful venture for 21Shares.
Overall, the integration of Chainlink’s technology into the 21Shares Core Ethereum ETF is a positive development for investors, as it offers greater transparency and visibility into the reserves backing the fund. This move reflects a commitment to maintaining high standards of integrity and trust in the market, ultimately benefiting all stakeholders involved.