March 1, 2024

ARK 21Shares' Bitcoin ETF Implements Chainlink's Proof of Reserve

With the integration of Chainlink's Proof of Reserve, ARKB investors gain access to real-time monitoring of bitcoin reserves.

In a significant move towards bolstering transparency in the cryptocurrency space, 21Shares, a prominent provider of crypto investment products, has unveiled its collaboration with Chainlink’s Proof of Reserve on the Ethereum mainnet. This integration marks a pivotal step in enhancing the visibility of bitcoin reserves that underpin the ARK 21Shares Bitcoin ETF, known as ARKB.

Investors in ARKB can now seamlessly verify the complete backing of the ETF by bitcoin holdings, courtesy of the public accessibility of the underlying bitcoin reserve and its historical data through Chainlink Proof of Reserve (PoR). This off-chain reserves feed, directly sourced from Coinbase, facilitates the on-chain reporting of reserve data via Chainlink oracles.

Ophelia Snyder, the co-founder and President of 21Shares US, emphasized the significance of this integration, stating:

“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.”

The implementation of PoR brings forth a multitude of benefits, including automated on-chain verification of ARKB’s bitcoin collateralization, decentralized delivery of external data to blockchains, and transparent monitoring of Chainlink PoR feeds in near real-time by any interested party.

Johann Eid, the Chief Business Officer at Chainlink Labs, underscored the transformative potential of Chainlink's Proof of Reserve, stating:

“By providing real-time, tamper-proof data on Bitcoin reserves, Chainlink Proof of Reserve is not just 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.”

The collaboration between 21Shares and ARK Invest has yielded a leading spot bitcoin ETF with nearly $2 billion in net assets since its inception in January 2024.

It's worth noting that the adoption of Chainlink’s PoR extends beyond ARKB. Prior to ARKB, other notable web3 projects such as Aave, Gemini, and TrustToken had already integrated this solution, signaling a broader industry trend towards heightened transparency and accountability.

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