Updated: December 11, 2024
Key Takeaways
21Shares uses Chainlink Proof of Reserve to verify ETH reserves in real-time.
Automated on-chain verification, decentralization, and transparency are key advantages of the integration.
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21Shares US LLC, an affiliate of 21Shares AG and a major player in crypto exchange-traded products, is partnering with Chainlink, a prominent decentralized oracle network, to integrate Chainlink Proof of Reserve (PoR), the companies announced Monday. The integration aims to enhance the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH).
The Chainlink Proof of Reserve system allows CETH investors to access real-time data regarding the underlying Bitcoin reserves and track their record, ensuring that the ETF accurately tracks ETH’s performance, Chainlink stated.
“We’re excited to further our collaboration with 21Shares and support a major milestone in our industry’s history by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve,” Johann Eid, Chief Business Officer of Chainlink Labs, commented on the collaboration.
The adoption of Chainlink’s PoR provides 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, Chainlink noted.
Ophelia Snyder, Co-Founder and President of 21Shares, highlighted the broader impact of this integration, stating:
“US approval of a spot Ethereum ETF serves as further evidence of crypto’s global momentum and adoption, bringing us one step closer to our mission to bridge the gap between traditional finance and decentralized finance.”
The latest integration comes after 21Shares’ spot Ethereum ETF, alongside other Ethereum products, commenced trading last week. As of July 29, 21Shares’ fund has attracted $7.5 million in net inflows, according to Farside Investors.
The move follows the successful integration of Chainlink Proof of Reserve for ARK 21Shares Bitcoin ETF earlier this year after the fund went live in the US.
“Chainlink Proof of Reserve has already been helping to enhance the transparency of our spot Bitcoin ETP since its initial launch, making the decision to leverage Chainlink’s industry-standard reserves verification service for our spot Ethereum ETP, CETH, a no-brainer,” Snyder added.
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