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Asset management firms Ark Invest and 21Shares have revealed a partnership aimed at improving transparency for their ARK 21Shares Bitcoin ETF (ARKB) by incorporating Chainlink’s Proof of Reserve platform to authenticate holdings data.
Announced on Wednesday, the integration with Chainlink is designed to offer investors real-time, verifiable information regarding the ETF’s holdings.
Ark Invest and 21Shares Collaborate with Chainlink to Improve Transparency and Security for ARKB Investors
Crypto ETF provider @21shares_us has implemented #Chainlink Proof of Reserve on @ethereum to enhance the transparency of ARK 21Shares Bitcoin ETF’s (ARKB) reserves alongside @ARKInvest.
Discover how PoR delivers transparency for both on-chain and off-chain assets: https://t.co/uauB02irKm
— Chainlink (@chainlink) February 28, 2024
Ophelia Snyder, co-founder and president of 21Shares, emphasized the importance of this partnership, noting that it provides an unparalleled level of insight and security for investors’ holdings in ARKB.
“By integrating Chainlink, the leading provider of Proof of Reserves for tokenized assets, we’re establishing a new benchmark for merging transparency and security in digital asset management.”
21Shares maintains a balance of security and transparency in its operations. By utilizing Chainlink’s Proof of Reserve solution, 21Shares offers clear visibility into ARKB’s Bitcoin reserves.
Enhanced security protocols, such as segregated wallets, multi-signature systems, and cold storage, ensure that holdings are both transparent and secure, preserving asset integrity and fostering investor confidence.
Investors in ARKB can now confirm that Bitcoin holdings fully support the ETF, as the underlying Bitcoin reserve and its history are publicly accessible through Chainlink Proof of Reserve (PoR).
This off-chain reserves feed, sourced directly from Coinbase, facilitates the on-chain reporting of reserve data via Chainlink oracles.
The advantages of Proof of Reserve include automated on-chain verification, decentralized provision of external data to blockchains, and transparent monitoring by anyone in near real-time.
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This partnership establishes a new standard for transparency and security in digital asset management, reinforcing 21Shares’ dedication to leading in secure, transparent asset management.
Chainlink’s Proof of Reserve Integration Enhances Transparency for ARKB Bitcoin ETF
Bitcoin, recognized as the first decentralized currency, commands the largest market capitalization in the digital asset sector and is widely acknowledged as a digital store of value with significant user adoption and liquidity.
ARKB offers a regulated avenue for investors to access this strategic asset, providing regulated exposure to Bitcoin without the challenges of self-trading or storage.
The choice to integrate Chainlink’s Proof of Reserve platform follows a similar initiative by fellow spot bitcoin ETF issuer Bitwise in January, which revealed its digital wallet address to demonstrate the holdings for its Bitwise Bitcoin ETF (BITB).
Bitwise’s transparency efforts were positively received by industry experts, setting a precedent for other ETF issuers to emulate.
With this integration, Ark/21Shares becomes the second issuer to bring holdings data on-chain, further improving transparency and accountability in the market. Since its launch on January 11, ARKB has emerged as one of the more successful spot bitcoin ETFs.
By the end of Monday, the fund had accumulated 33,274 bitcoins and reported assets under management exceeding $1.8 billion.
This positions ARKB as the third highest in 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 is important to note that the adoption of Chainlink’s PoR extends beyond ARKB, as other web3 projects like Aave, Gemini, and TrustToken have previously integrated the solution.
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