Ark and 21Shares increase BTC ETF transparency with Chainlink integration

Author: Oluwapelumi Adejumo, Cryptoslate; Compiled by: Deng Tong, Golden Finance

According to a statement on February 28,Ark Invest and 21Shares have integrated Chainlink proof of reserves on the Ethereum mainnet , to increase the transparency of the ARK 21Shares Bitcoin ETF (ARKB).

With this move, investors inARKB can verify that the ETF’s Bitcoin holdings fully support its value. This transparency is facilitated by public access to underlying Bitcoin reserves and their historical data through Chainlink Proof of Reserves (PoR).

This mechanism is powered by off-chain reserve data directly from Coinbase, with on-chain reserve information reporting enabled through Chainlink oracles.

Ophelia Snyder, co-founder and president of 21 Shares US, said:

“This partnership allows us to provide unparalleled insight and security for ARKB held by investors, strengthening 21Shares leads the promise of secure, transparent asset management."

Transparency Efforts

ARKB’s transparency efforts follow Bit Bitwise, the issuer of cryptocurrency ETF, disclosed the on-chain address of BTC held by its BITB in January. Industry experts widely praised the move and encouraged other ETF issuers to adopt similar transparency measures.

Snyder said the company’s decision sets “a new standard for combining transparency and security” in digital asset management.

Chainlink Labs Chief Commercial Officer Johann Eid added:

“Chainlink Proof of Reserves not only enhances the security and transparency of the ARK 21Shares Bitcoin ETF, but also allows institutions and market participants to confidence to actively participate in on-chain finance.”

Since the U.S. SEC approved several Bitcoin ETFs for trading in January, these investment vehicles have experienced a continued positive trajectory and mass adoption, with some worthy Note milestones such as the third largest net inflow day recorded on February 27th.

Notably, ARKB is one of the best-performing spot Bitcoin ETFs that has launched. However, in terms of assets under management (AuM), it lags behind BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Trust (FBTC). The ETF currently holds over 33,000 units of the flagship digital asset, worth approximately $2 billion.