21Shares, a part of 21Shares AG, has recently announced the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This integration aims to improve the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH), which is physically backed by Ether and tracks its performance. The Zurich-based financial institution stated that this move aligns with its broader goals of expanding its US product lineup and strengthening its presence in the US market.
By integrating Chainlink’s Proof of Reserve (PoR), 21Shares ensures transparent visibility into the Ether reserves backing CETH, increasing investor confidence. The key benefits of this integration include automated on-chain verification, removing central points of failure in transmitting external data to blockchains, and providing near real-time transparency for investors to verify asset collateralization independently. Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about the collaboration and the enhanced transparency it brings to the 21Shares Core Ethereum ETF.
This announcement comes on the heels of the initial spot Ether ETFs going live for trading in the US, indicating the growing global momentum and adoption of cryptocurrencies. Ophelia Snyder, Co-Founder and President of 21Shares, mentioned that Chainlink PoR had significantly improved the transparency of their spot Bitcoin ETP, making the decision to use Chainlink’s reserves verification service for the spot Ethereum ETP, CETH, a no-brainer. This integration is seen as a major milestone in the industry’s history.
The integration of Chainlink Proof of Reserve for the 21Shares Core Ethereum ETF follows a similar integration that occurred in February 2024 for the ARK 21Shares Bitcoin ETF. Launched in January 2024, the ARK 21Shares Bitcoin ETF (ARKB) is a leading spot Bitcoin ETP with $3.2 billion in assets under management. The success of integrating Chainlink PoR for the ARKB ETF likely influenced the decision to implement the same for the spot Ethereum ETP, CETH, further enhancing transparency and investor confidence.
The collaboration between 21Shares and Chainlink highlights the importance of transparency and trust in the crypto market. By leveraging Chainlink’s proven track record in enabling over $12 trillion in value for on-chain markets, 21Shares aims to provide investors with reliable and real-time information about the reserves backing their ETFs. This move not only benefits investors but also contributes to the wider adoption and acceptance of digital assets in the traditional financial industry.
Overall, the integration of Chainlink Proof of Reserve for the 21Shares Core Ethereum ETF demonstrates a commitment to transparency, reliability, and innovation in the crypto market. As the industry continues to evolve and grow, partnerships like this one play a crucial role in building trust and confidence among investors. With increased visibility into asset collateralization, investors can make more informed decisions, ultimately driving further adoption of digital assets in the mainstream financial sector.
