ARK Invest and 21Shares Partner with Chainlink to Enhance Transparency of Bitcoin ETF
ARK Invest and 21Shares have joined forces with Chainlink to improve the transparency of their Bitcoin ETF. This integration aims to provide unprecedented insight and security for investors in the ARK 21Shares Bitcoin ETF (ARKB) by utilizing Chainlink’s Proof of Reserve platform for holdings verification, as stated by Ophelia Snyder, Co-Founder and President of 21Shares.
This collaboration marks a significant milestone in the cryptocurrency industry, positioning ARK and 21Shares as the second Bitcoin ETF issuer to make their holdings data accessible onchain. Bitwise previously made a similar move in January when it revealed its digital wallet address for its Bitcoin ETF (BITB), earning recognition from industry experts for promoting transparency.
The ARKB, which was launched on January 11 alongside nine other spot Bitcoin ETFs, has experienced considerable success. As of Monday, the fund reported holding 33,274 Bitcoins with assets under management exceeding $1.8 billion, making it the third-largest fund in terms of capital attraction, trailing behind only Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT).
Enhancing Transparency with Chainlink Integration
The partnership between ARK Invest, 21Shares, and Chainlink is aimed at enhancing transparency within the ARKB by leveraging Chainlink’s Proof of Reserve platform. Here’s how this integration will benefit investors:
- Improved Verification: By utilizing Chainlink’s Proof of Reserve platform, investors can have confidence in the accuracy of the reported holdings data for the ARKB.
- Onchain Accessibility: The integration allows investors to access the holdings data onchain, ensuring that it is easily verifiable and transparent.
- Unparalleled Insight: With the help of Chainlink’s technology, investors gain unprecedented insight into the ARKB’s holdings, promoting trust and accountability.
Industry Recognition for Transparency Initiatives
The move by ARK Invest and 21Shares to partner with Chainlink in enhancing transparency within their Bitcoin ETF follows Bitwise’s similar initiative in January. Here are some key points regarding industry recognition:
- Bitwise Commendation: Bitwise received praise from industry specialists for its contribution to transparency when it revealed its digital wallet address for its Bitcoin ETF (BITB).
- Promoting Trust: By making holdings data accessible onchain, both Bitwise and ARK Invest/21Shares are actively promoting trust and accountability within the cryptocurrency industry.
- Transparency as a Priority: The focus on transparency demonstrates a commitment to addressing concerns related to the opacity of cryptocurrency investments.
Success of ARKB and Growing Investor Interest
The ARKB has achieved significant success since its launch, attracting a substantial amount of assets under management. Here are some noteworthy points regarding the fund:
- Impressive Holdings: As of Monday, the ARKB reported holding 33,274 Bitcoins, showcasing the fund’s sizable position in the cryptocurrency market.
- Capital Attraction: The ARKB’s assets under management have surpassed $1.8 billion, positioning it as one of the top funds in terms of capital attraction.
- Rising Popularity: The success of the ARKB highlights the increasing interest among investors in gaining exposure to Bitcoin through regulated investment vehicles.
Hot Take: Embracing Transparency for Investor Confidence 👀
The collaboration between ARK Invest, 21Shares, and Chainlink to enhance transparency within the ARKB is a positive development for the cryptocurrency industry. By leveraging Chainlink’s technology, investors can now have greater confidence in the accuracy of holdings data and gain valuable insights into the fund’s composition.
Transparency initiatives like these not only address concerns related to opacity but also promote trust and accountability among investors. As more Bitcoin ETF issuers follow suit and embrace transparency, it will further legitimize the industry and attract more institutional and retail investors.
The success of the ARKB and the growing interest in regulated investment vehicles for Bitcoin demonstrate the increasing adoption and recognition of cryptocurrencies as a legitimate asset class. With transparency becoming a priority, investors can make informed decisions and participate in this evolving market with greater confidence.
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