Leading crypto investment product provider 21Shares has partnered with Chainlink to integrate a groundbreaking Proof of Reserve (PoR) solution for its star Bitcoin exchange-traded fund, ARKB. This move provides unprecedented transparency into the Bitcoin reserves backing the high-profile ETF.
TLDR
- 1Shares has integrated Chainlink’s Proof of Reserve (PoR) solution to provide transparency into the Bitcoin reserves backing its ARK 21Shares Bitcoin ETF (ARKB)
- The PoR feed sources reserve data directly from Coinbase and allows anyone to monitor the reserves in near real-time on the Ethereum blockchain
- This sets a new transparency standard for crypto ETFs and could encourage further adoption of PoR across the industry
- ARKB has accumulated over 33,274 BTC worth $1.8 billion since launching in January 2024
- Other major DeFi projects like Aave, Gemini, and TrustToken have already adopted Chainlink’s PoR technology
The PoR feed sources up-to-date reserve data directly from Coinbase and publishes it on-chain via Chainlink’s oracle network, enabling anyone to monitor ARKB’s reserves in near real-time. Automated on-chain verification of Bitcoin collateralization is now possible, with the ETF’s holdings fully transparent through a tamper-proof, publicly accessible feed.
This collaboration sets a major new standard for transparency and security in digital asset investing, empowering investors with independent third-party verification of reserves. As crypto ETFs begin targeting mainstream institutional investors, such transparent proof of holdings could rapidly become a basic expectation to build trust.
Crypto ETF issuer @21shares_us has integrated #Chainlink Proof of Reserve on @ethereum to increase the transparency of ARK 21Shares Bitcoin ETF’s (ARKB) reserves with @ARKInvest.
Explore how PoR provides transparency for both onchain and offchain assets: https://t.co/uauB02irKm
— Chainlink (@chainlink) February 28, 2024
ARKB has rapidly emerged as a leading spot Bitcoin ETF since its launch in collaboration between 21Shares and renowned investment firm ARK Invest in January 2024. Despite only being active for two months, the ETF has already accumulated an impressive 33,274 BTC worth over $1.8 billion in net assets, ranking as the third largest Bitcoin ETF by assets under management globally.
The ETF’s early success can be partially attributed to 21Shares’ reputation as a pioneer in crypto investing and Ark Invest’s pedigree as an innovative investment manager. However, the integration with Chainlink’s industry-leading PoR solution significantly raises the bar for transparency and validity of holdings. This could provide the transparency necessary to onboard the next wave of institutional investors and fuel further explosive growth.
Moreover, the adoption of PoR extends far beyond just ARKB in the expanding world of DeFi. Earlier trailblazers in the space like Aave, Gemini, and TrustToken have already integrated Chainlink’s tamper-proof reserve monitoring across billions in assets, establishing it as a DeFi standard. As more crypto ETFs launch targeting mainstream investors, 21Shares’ integration of PoR for ARKB could prompt a domino effect across the ETF world.
In an environment still defined by uncertainty and seeds of doubt, the neutral third-party verification of holdings made possible by Chainlink PoR feeds promises to become a ubiquitous baseline expectation for fund transparency and validity. 21Shares and ARK Invest are leading the way into a future defined by on-chain proof of reserves.
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