21Shares Integrates Chainlink Proof of Reserve for ARKB Bitcoin ETF Transparency

Integration of Chainlink's Proof of Reserve enhances transparency for ARKB Bitcoin ETF, allowing investors to verify full backing by Bitcoin holdings. Learn more about the benefits and implications of this integration.

21Shares, a provider of cryptocurrency investment products, revealed today its implementation of Chainlink’s Proof of Reserve on the Ethereum mainnet, enhancing the transparency of the Bitcoin reserves supporting the ARK 21Shares Bitcoin ETF, ARKB.

Investors in ARKB can now authenticate that the ETF is fully supported by Bitcoin assets, thanks to the public availability of the underlying Bitcoin reserve and its historical records through Chainlink Proof of Reserve (PoR). This off-chain reserves feed, directly sourced from Coinbase, permits the on-chain reporting of reserve data using Chainlink oracles.

“Through the integration with Chainlink, the leading industry player in Proof of Reserves for tokenized assets, we are establishing a new benchmark for blending transparency and security in managing digital assets,” stated Ophelia Snyder, 21Shares US co-founder and President.

The advantages of PoR encompass automated on-chain validation of ARKB’s Bitcoin collateralization, decentralized provision of external data to blockchains, and transparent monitoring of Chainlink PoR feeds by any interested party in almost real-time.

“By delivering real-time, tamper-proof information on Bitcoin reserves, 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 participate in on-chain finance,” commented Johann Eid, Chief Business Officer at Chainlink Labs.

The partnership between 21Shares and ARK Invest has resulted in a prominent spot Bitcoin ETF with almost $1.6 billion in net assets since its launch in January 2024.

The adoption of Chainlink’s PoR extends beyond ARKB. Other web3 projects like Aave, Gemini, and TrustToken had previously incorporated the solution before ARKB.