21Shares Integrates Chainlink to Enhance Ethereum ETF Transparency

21Shares integrates Chainlink’s Proof of Reserve on Ethereum for real-time ETH ETF transparency.”
Chainlink’s Proof of Reserve powers 21Shares’ Ether ETF, following its successful implementation in a $3.2B Bitcoin ETF
BlackRock cautions against social media investment scams, advising public vigilance and secure investing practices

21Shares has announced its integration of Chainlink’s Proof of Reserve on the Ethereum mainnet to boost transparency on ETH reserves supporting the 21Shares Core Ethereum ETF (CETH), thereby confirming CETH as a true holder of Ether (ETH), the second-largest cryptocurrency by market capitalization.

Integration of Chainlink’s Decentralized Platform

The decision to incorporate Chainlink’s Proof of Reserve stems from its wide usage as a reliable decentralized platform for computation; this integration provides investors with real-time visibility into the Ethereum reserves that support CETH

Therefore, this integration allows investors to access real-time reserve and historical information through an off-chain feed that sources data directly from Coinbase. By leveraging Chainlink’s technology, 21Shares ensures that the collateralization of CETH remains transparent and secure, underpinned by Chainlink’s platform, which enables over $12 trillion in on-chain markets.

Johann Eid, CEO at Chainlink Labs, emphasized the importance of this partnership in promoting transparency within the industry and supporting the broader adoption of digital assets. Eid noted that this collaboration will help financial institutions achieve seamless global tokenization.

Advantages of Chainlink Proof of Reserve

The implementation of Chainlink’s Proof of Reserve follows the approval of the first spot Ethereum ETFs in the United States, which began trading on July 23. In January 2024, 21Shares incorporated Chainlink Proof of Reserve into its spot Bitcoin ETF (ARKB), managing $3.2 billion in assets. The success of this initiative with BTC reserves has prompted 21Shares to extend similar measures to its Ether ETF, thereby fostering greater investor confidence and transparency.

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Chainlink Proof of Reserve offers numerous advantages, including automated on-chain verification, decentralization, and transparency. The integration of automated on-chain verification allows for the creation of reference contracts with up-to-date data, enabling automated logic for both investors and protocols based on changes in CETH’s collateralization state. The decentralized nature of Chainlink’s system ensures updates without any central points, providing reliable information on CETH’s collateralization on the chain. This transparency permits anyone to monitor Proof of Reserve feeds in near real-time, facilitating independent verifications of asset collateralization.

BlackRock Warns Against Investment Scams

Concurrently, BlackRock has warned about the growing number of investment scams, particularly those employing bitcoin investing websites and social media platforms like WhatsApp and Telegram. The company highlighted that neither BlackRock nor its executives solicit investments or payments via social media channels. BlackRock advised the public to exercise caution and avoid engaging in suspicious activities.

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Antonella Martin

Antonella is a cryptocurrency and news writer who travels the world, finding inspiration in diverse cultures. She cherishes moments sitting on the beach, watching sunsets. Through her writing, Antonella explores the dynamic realm of cryptocurrency and delivers insightful news. Her work encapsulates both the excitement of finance and the serenity of nature's beauty.