21Shares taps Chainlink for proof of reserve of its Ethereum ETF

21Shares has integrated Chainlink to provide transparency into proof-of-reserve for its recently launched spot Ethereum exchange-traded fund.

21Shares, a leading issuer of cryptocurrency exchange-traded products, announced the integration on July 29, stating that it will leverage Chainlink (LINK) technology to provide access to proof-of-reserve data for its 21Shares Core Ethereum ETF, which trades under the ticker CETH.

21Shares’ CETH is among the spot Ethereum (ETH) ETFs that launched last week following final approval from the U.S. Securities and Exchange Commission.

“We are excited to further our collaboration with 21Shares and support a significant milestone in our industry’s history by bringing greater transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve,” said Johann Eid, chief operating officer of Chainlink Labs.

Eid added that the partnership is part of Chainlink’s goal to help drive greater adoption of cryptocurrencies, especially for financial institutions looking to enter the space through tokenization.

CETH holders will have access to data on their ETH reserves

21Shares stated in a blog post that it chose Chainlink as its decentralized computing platform due to its significant momentum in the industry, which has enabled more than $12 trillion in on-chain value transfers since Chainlink’s inception.

This integration aims to provide assurance and trust to CETH holders, allowing them to use proof-of-reserve functionality for visibility into underlying ETH reserves. Ensuring asset integrity and investor confidence are key aspects of the market that this collaboration aims to enhance.

Notably, 21Shares is leveraging Chainlink’s PoR feature to ensure and increase transparency for its spot Bitcoin ETF ARKB.

Issued by ARK 21Shares, ARKB began operations in January 2024 and currently manages approximately $3.2 billion in assets.

According to SosoValue data, cumulative net inflows in ARKB have amounted to $2.6 billion so far.