Asset managers Ark Invest and 21Shares have announced a collaboration to enhance transparency for their ARK 21Shares Bitcoin ETF (ARKB) by integrating Chainlink’s Proof of Reserve platform to verify holdings data.
Announced Wednesday, the Chainlink integration aims to provide investors with real-time, verifiable insights into the ETF’s holdings.
Ark Invest and 21Shares Integrate Chainlink to Enhance Transparency and Security for ARKB Investors
Crypto ETF issuer @21shares_us has integrated #Chainlink Proof of Reserve on @ethereum to increase the transparency of ARK 21Shares Bitcoin ETF’s (ARKB) reserves with @ARKInvest.
Explore how PoR provides transparency for both onchain and offchain assets: https://t.co/uauB02irKm
— Chainlink (@chainlink) February 28, 2024
Ophelia Snyder, co-founder and president at 21Shares, highlighted the significance of this collaboration, stating that it allows for an unmatched level of insight and safety for investors’ holdings in ARKB.
“By integrating Chainlink, the industry leader in Proof of Reserves for tokenized assets, we’re setting a new standard for combining transparency and security in digital asset management.”
21Shares ensures a balance of security and transparency in its operations. Through the integration of Chainlink’s Proof of Reserve solution, 21Shares provides clear visibility into ARKB’s Bitcoin reserves.
Enhanced security measures, including segregated wallets, multi-sig protocols, and cold storage, ensure transparent yet secure holdings, maintain asset integrity, and build investor trust.
Investors in ARKB can now verify that Bitcoin holdings fully back the ETF, as the underlying Bitcoin reserve and reserve history, is publicly available through Chainlink Proof of Reserve (PoR).
This off-chain reserves feed, sourced directly from Coinbase, enables the on-chain reporting of reserve data via Chainlink oracles.
The benefits of Proof of Reserve include automated on-chain verification, decentralized delivery of external data to blockchains, and transparent monitoring by anyone in near real-time.
This collaboration sets a new standard for transparency and security in digital asset management, reinforcing 21Shares’ commitment to leading the way in secure, transparent asset management.
Integration of Chainlink’s Proof of Reserve Boosts Transparency for ARKB Bitcoin ETF
Bitcoin, as the first decentralized currency, holds the largest market cap in the digital asset space and is widely recognized as a digital store of value with extensive user adoption and liquidity.
ARKB provides a regulated vehicle for investors to access this strategic asset, offering regulated exposure to Bitcoin without the complexities of self-trading or storage.
The decision to integrate Chainlink’s Proof of Reserve platform follows a similar move by fellow spot bitcoin ETF issuer Bitwise in January, which disclosed its digital wallet address to show the holdings for its Bitwise Bitcoin ETF (BITB).
Bitwise’s efforts toward transparency were well-received by industry experts, setting a precedent for other ETF issuers to follow suit.
With this integration, Ark/21Shares becomes the second issuer to bring holdings data on-chain, further enhancing transparency and accountability in the market. Since its launch on January 11, ARKB has been one of the more successful spot bitcoin ETFs.
By the end of Monday, the fund had amassed 33,274 bitcoins and boasted assets under management exceeding $1.8 billion.
This places ARKB as the third highest in terms of assets under management among all issuers, with only Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) attracting more capital.
It’s worth noting that the adoption of Chainlink’s PoR extends beyond ARKB, as other web3 projects such as Aave, Gemini, and TrustToken have previously integrated the solution.