Olga Prentiss
Feb 28, 2024 - 09:05

Ark Invest 21Shares Bitcoin ETF transparency Chainlink integration Coinbase

Ark Invest and 21Shares boost Bitcoin ETF transparency with Chainlink integration, setting a new standard for secure, transparent asset management.

Ark Invest and 21Shares have taken a significant step to boost transparency for the ARK 21Shares Bitcoin ETF (ARKB) by integrating Chainlink Proof of Reserve on the Ethereum mainnet. This move allows investors in ARKB to verify that the ETF's Bitcoin holdings fully support its value. The public accessibility of the underlying Bitcoin reserve and its historical data through Chainlink Proof of Reserve (PoR) facilitates this transparency.

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, expressed that this collaboration allows them to offer an unmatched level of insight and safety for investors' holdings for ARKB, reinforcing their commitment to leading the way in secure, transparent asset management.

The transparency efforts of ARKB follow those 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 stated that 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 that Chainlink Proof of Reserve is not only 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 on-chain 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. ARKB is one of the top performers among launched spot Bitcoin ETFs, holding over 33,000 units of the flagship digital asset, valued at approximately $2 billion.

In conclusion, the integration of Chainlink Proof of Reserve on the Ethereum mainnet by Ark Invest and 21Shares is a significant step in enhancing transparency for the ARK 21Shares Bitcoin ETF. This move not only provides investors with the ability to verify the ETF's Bitcoin holdings but also sets a new standard for transparency and security in digital asset management. With the increasing adoption and positive trajectory of Bitcoin ETFs, the industry is poised for further growth and development in the coming months.