21Shares US LLC, a significant player in the world of crypto exchange-traded products, has announced a partnership with the decentralized oracle network Chainlink. This collaboration will see the integration of Chainlink Proof of Reserve (PoR) to enhance the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH). Chainlink’s PoR system will provide investors with real-time data on the underlying Bitcoin reserves, allowing them to track their performance accurately.
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about the collaboration, stating that it marks a major milestone in the industry’s history. The integration of Chainlink’s PoR system will offer real-time data on the reserve’s status, accessible publicly through an off-chain reserves feed from Coinbase. This feature not only secures the holdings but also maintains asset integrity and builds investor trust by eliminating central points of failure in data delivery.
Ophelia Snyder, Co-Founder and President of 21Shares, emphasized the significance of this integration, stating that the approval of a spot Ethereum ETF in the US demonstrates the global momentum and adoption of cryptocurrencies. This move brings 21Shares one step closer to its mission of bridging the gap between traditional finance and decentralized finance. The integration comes on the heels of 21Shares’ spot Ethereum ETF and other Ethereum products launching last week, attracting $7.5 million in net inflows as of July 29.
This collaboration follows the successful integration of Chainlink Proof of Reserve for ARK 21Shares Bitcoin ETF earlier this year. Ophelia Snyder highlighted the effectiveness of Chainlink’s PoR in enhancing the transparency of their spot Bitcoin ETP and stated that leveraging it for their spot Ethereum ETP, CETH, was a logical decision. By utilizing Chainlink’s industry-standard reserves verification service, 21Shares aims to provide investors with increased transparency and trust in their crypto products.
