21Shares Boosts Investor Trust with Chainlink Integration for Ethereum ETF
Zafar Naik29 Jul 20242 min read
21Shares, a major player in the crypto exchange-traded fund (ETF) market, has made a significant move to increase investor confidence. The company has integrated Chainlink’s Proof of Reserve (PoR) on Ethereum to enhance the transparency of their Core Ethereum ETF (CETH).
Here’s what we know.
Enhancing Trust with Transparency
In a recent press release, 21Shares US LLC revealed that it has adopted Chainlink’s Proof of Reserve on the Ethereum mainnet. This integration aims to provide clear information about the Ethereum reserves backing their Core Ethereum ETF (CETH). By using Chainlink’s widely recognized Proof of Reserve, 21Shares assures investors that CETH is genuinely supported by physical Ethereum holdings. Investors can now access up-to-date data on 21Shares’ ETH reserves through a Chainlink feed, which pulls information directly from Coinbase Custody.
Nate Geraci, President of ETFStore, even shared a screenshot of the CETH reserve to highlight the increased transparency this integration offers.
Why Chainlink Was Chosen
21Shares explained their choice of Chainlink’s Proof of Reserve in their announcement. The firm selected Chainlink because of its strong track record, having facilitated over $12 trillion in total value for on-chain markets. This integration ensures complete transparency while also maintaining asset security and integrity. Chainlink’s Proof of Reserve eliminates the need for third-party data providers, keeping the system fully decentralized and preventing data update failures.
The automated on-chain verification process keeps data current. According to the latest information, 21Shares currently holds 2,800 ETH in their reserve.
Proof of Success!
21Shares is already familiar with Chainlink’s PoR technology, having integrated it for their ARK Bitcoin ETF (ARKB) in February 2024. ARKB is a leading Bitcoin spot exchange-traded product that manages assets worth $3.2 billion.
Important Investor Information
In a Twitter post, 21Shares US provided more details about the integration and clarified that the Core Ethereum ETF is not registered under the Investment Company Act of 1940.
They emphasized that this fund is different from other exchange-traded products or ETFs and may not be suitable for all investors. Single-asset trusts can experience high volatility, posing a risk of substantial losses. For more information, their Twitter post includes a link to the 139-page ETH ETF Prospectus for 21Shares CETH.
With this strategic move, 21Shares aims to strengthen investor trust and bring greater transparency to the crypto ETF market.
Also Read : Bitcoin in Hong Kong’s Financial Strategy: A Game-Changer for Digital Finance
What are your thoughts on this move by 21Shares? Let us know.
