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Ark Invest and 21Shares enhance Bitcoin ETF transparency with Chainlink integration

source-logo  cryptoslate.com 28 February 2024 16:14, UTC

Ark Invest and 21Shares have integrated Chainlink Proof of Reserve on the Ethereum mainnet to bolster transparency of the ARK 21Shares Bitcoin ETF (ARKB), according to a Feb. 28 statement.

With this move, investors in ARKB can verify that the ETF’s Bitcoin holdings completely support its value. This transparency is facilitated by the public accessibility of the underlying Bitcoin reserve and its historical data through Chainlink Proof of Reserve (PoR).

The mechanism is powered by off-chain reserves data sourced directly from Coinbase and enables on-chain reporting of reserve information via Chainlink oracles.

Ophelia Snyder, the Co-founder and President at 21 Shares US, said:

“This collaboration allows us to offer an unmatched level of insight and safety for our investors’ holdings for ARKB, reinforcing 21Shares’ commitment to leading the way in secure, transparent asset management.”

Transparency efforts

ARKB’s transparency efforts followed that of Bitwise, a Bitcoin ETF issuer that revealed the on-chain address for its BITB’s BTC holdings in January. Industry experts widely lauded this initiative, urging other ETF issuers to adopt similar transparency measures.

Snyder said the firm’s decision sets a “new standard for combining transparency and security” in digital asset management.

Johann Eid, the Chief Business Officer at Chainlink Labs, added:

“Chainlink Proof of Reserve is not just enhancing the security and transparency of the ARK 21Shares Bitcoin ETF, but also empowering institutions and market participants with the confidence to actively engage with onchain finance.“

Since the US SEC approved several Bitcoin ETFs for trading in January, these investment vehicles have experienced a sustained positive trajectory and massive adoption, marked by notable milestones like recording their third-largest day of net inflows on Feb. 27.

Notably, ARKB is one of the top performers among launched spot Bitcoin ETFs. However, it trails behind BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Trust (FBTC) in terms of assets under management (AuM). Presently, the ETF holds over 33,000 units of the flagship digital asset, valued at approximately $2 billion.