Ark Invest and 21Shares Collaborate to Enhance Transparency for ARKB Investors
Asset managers Ark Invest and 21Shares have partnered together to improve transparency for their ARK 21Shares Bitcoin ETF (ARKB) by integrating Chainlink’s Proof of Reserve platform. This integration aims to provide real-time, verifiable insights into the ETF’s holdings, giving investors an unmatched level of insight and safety.
Enhancing Transparency and Security
Ophelia Snyder, co-founder and president at 21Shares, emphasized the significance of this collaboration in enhancing transparency and security for investors. By integrating Chainlink, a leader in Proof of Reserves for tokenized assets, they are setting a new standard for combining transparency and security in digital asset management.
- Through the integration of Chainlink’s Proof of Reserve solution, 21Shares ensures clear visibility into ARKB’s Bitcoin reserves.
- Enhanced security measures such as segregated wallets, multi-sig protocols, and cold storage are implemented to maintain asset integrity and build investor trust.
- Investors can now verify that Bitcoin holdings fully back the ETF, as the underlying Bitcoin reserve and reserve history are publicly available through Chainlink Proof of Reserve (PoR).
- The off-chain reserves feed, sourced directly from Coinbase, enables 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 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 and transparent asset management.
Integration of Chainlink’s Proof of Reserve Boosts Transparency for ARKB Bitcoin ETF
ARKB provides a regulated vehicle for investors to access Bitcoin, the first decentralized currency with the largest market cap in the digital asset space. The decision to integrate Chainlink’s Proof of Reserve platform follows a similar move by Bitwise, another spot Bitcoin ETF issuer, in January.
- Bitwise disclosed its digital wallet address to show the holdings for its Bitwise Bitcoin ETF (BITB), setting a precedent for transparency in the industry.
- 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, amassing 33,274 bitcoins and exceeding $1.8 billion in assets under management.
The adoption of Chainlink’s Proof of Reserve extends beyond ARKB, as other web3 projects such as Aave, Gemini, and TrustToken have previously integrated the solution.
Hot Take: Embracing Transparency and Security in Crypto Investments
The collaboration between Ark Invest and 21Shares to integrate Chainlink’s Proof of Reserve platform is a significant step towards enhancing transparency and security in crypto investments. By providing real-time, verifiable insights into the ARKB Bitcoin ETF’s holdings, investors can have greater confidence in their investment decisions.
This integration sets a new standard for combining transparency and security in digital asset management. It reinforces the commitment of asset managers like Ark Invest and 21Shares to lead the way in secure and transparent asset management practices.
As more issuers follow suit and adopt similar transparency measures, it paves the way for increased trust and credibility in the crypto market. Investors can now have a clearer view of the underlying assets and their integrity, contributing to a more informed and secure investment environment.
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