21Shares US LLC, an affiliate of 21Shares AG and a leading player in the world of crypto exchange-traded products, has announced a strategic partnership with Chainlink, a well-known decentralized oracle network. The collaboration will see the integration of Chainlink Proof of Reserve (PoR) to enhance the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH).
The Chainlink Proof of Reserve system allows investors in CETH to access real-time information about the underlying Bitcoin reserves and monitor their performance. This ensures that the ETF accurately reflects the performance of ETH, according to Chainlink.
“We are thrilled to expand our partnership with 21Shares and contribute to a significant milestone in the industry by bringing increased transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve,” said Johann Eid, Chief Business Officer of Chainlink Labs.
The integration of Chainlink’s PoR provides real-time data on the status of the reserves, which can be publicly accessed through an off-chain reserves feed from Coinbase. This not only secures the assets but also ensures the integrity of the assets and enhances investor trust by eliminating potential points of failure in data delivery, as noted by Chainlink.
Ophelia Snyder, Co-Founder and President of 21Shares, emphasized the broader impact of this collaboration, stating:
“The approval of a spot Ethereum ETF in the US is further evidence of the global momentum and adoption of crypto, bringing us closer to our goal of bridging the gap between traditional finance and decentralized finance.”
This latest integration follows the successful launch of 21Shares’ spot Ethereum ETF and other Ethereum products, which began trading last week. As of July 29, the 21Shares fund has attracted $7.5 million in net inflows, according to Farside Investors.
This move follows the earlier integration of Chainlink Proof of Reserve for the ARK 21Shares Bitcoin ETF, which went live in the US earlier this year.
“Chainlink Proof of Reserve has already enhanced the transparency of our spot Bitcoin ETP since its launch, making the decision to utilize Chainlink’s industry-standard reserves verification service for our spot Ethereum ETP, CETH, an obvious choice,” added Snyder.