Short Overview
21Shares, a leading provider of crypto investment products, has recently integrated Chainlink’s Proof of Reserve system for its Ethereum exchange-traded fund (ETF). This move aims to enhance transparency regarding the ETH reserves supporting the ETF, providing investors with real-time data and history directly from Coinbase. The integration of Chainlink’s PoR for Ethereum follows a similar integration for 21Shares’ Bitcoin ETF and coincides with the recent launch of the first spot Ethereum ETFs in the US.
Increasing Transparency with Chainlink
21Shares has incorporated Chainlink’s Proof of Reserve (PoR) system into its 21Shares Core Ethereum ETF, known as CETH. This integration is designed to offer investors greater visibility and real-time access to information about the Ethereum reserves underpinning the ETF.
- The PoR system retrieves data from Coinbase, where the assets of the ETF are held, enabling anyone to track the current amount of Ethereum in the fund and review its reserve history.
Chainlink’s Trusted Solution
21Shares opted for Chainlink due to its proven track record in securing over $12 trillion in value across various blockchain markets. By leveraging Chainlink’s PoR system, the company aims to establish trust with investors looking for transparency in their investment products.
- Speaking on the decision, Ophelia Snyder, co-founder and president of 21Shares, emphasized the positive impact of Chainlink Proof of Reserve in enhancing transparency for their spot Bitcoin ETP.
Significance of Ethereum ETF Launch
The integration of Chainlink’s PoR system coincides with the recent approval of the first spot Ethereum ETFs in the US. These ETFs provide investors with exposure to Ethereum without the need to directly hold the cryptocurrency, marking a significant milestone for crypto adoption.
- The approval of Ethereum ETFs in the US signals the growing momentum and acceptance of cryptocurrencies globally, moving towards bridging the gap between traditional finance and decentralized finance.
Industry Response and Outlook
Johann Eid, chief business officer of Chainlink Labs, highlighted the role of 21Shares in promoting the adoption of digital assets and praised the Chainlink platform for facilitating seamless tokenization on a global scale.
- Despite the initial mixed reception of Ethereum ETFs in the market, the move towards greater transparency by 21Shares reflects the industry’s response to increased scrutiny and the demand for accountability in the crypto space.
Hot Take
Embracing transparency and leveraging Chainlink’s Proof of Reserve system, 21Shares aims to provide investors with real-time visibility into the reserves backing its Ethereum ETF. This integration aligns with the broader trend towards increased accountability and trust in the crypto investment landscape, paving the way for further adoption and innovation.
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