21Shares taps Chainlink for proof of reserve of its Ethereum ETF

21Shares has integrated Chainlink to provide transparency in terms of proof of reserves for its recently launched spot Ethereum exchange-traded fund.

21Shares, a leading issuer of crypto exchange-traded products, announced the integration on July 29, noting that it will tap into Chainlink (LINK)’s technology to offer access to proof of reserve data for the 21Shares Core Ethereum ETF that trades under the ticker CETH.

21Shares’ CETH is among the spot Ethereum (ETH) ETFs that launched last week following final approval by the U.S. Securities and Exchange Commission.

“We’re excited to further our collaboration with 21Shares and support a major milestone in our industry’s history by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve,” Johann Eid, chief business officer at Chainlink Labs, said.

The partnership is part of Chainlink’s goal of aiding further crypto adoption, particularly for financial institutions looking to make inroads into the space through tokenization, Eid added.

CETH holder to access data on ETH reserves

21Shares said in a blog post that it chose Chainlink as its decentralized computing platform due to Chainlink’s significant industry traction, having enabled more than $12 trillion in on-chain value transfer since its inception.

This integration aims to offer assurance and confidence to holders of CETH, allowing them to leverage the proof of reserve feature for visibility into the underlying ETH reserves. Ensuring asset integrity and investor trust are key aspects of the market that this collaboration aims to enhance.

Notably, 21Shares already leverages Chainlink’s PoR feature to provide and enhance transparency for its spot Bitcoin ETF ARKB.

ARKB, issued by ARK 21Shares, launched in January 2024 and currently holds about $3.2 billion in assets under management.

According to SosoValue data, ARKB has so far recorded $2.6 billion in cumulative net inflows.