Ark Invest and 21Shares enhance Bitcoin ETF transparency with Chainlink integration Ark Invest and 21Shares enhance Bitcoin ETF transparency with Chainlink integration
Market observers have urged the Bitcoin ETF issuers to embrace industry-standard transparency measures.
2 min read
Updated: Feb. 28, 2024 at 7:14 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Ark Invest and 21Shares have integrated Chainlink Proof of Reserve on the Ethereum mainnet to bolster transparency of the ARK 21Shares Bitcoin ETF (ARKB), according to a Feb. 28 statement.
With this move, investors in ARKB can verify that the ETF’s Bitcoin holdings completely support its value. This transparency is facilitated by the public accessibility of the underlying Bitcoin reserve and its historical data through Chainlink Proof of Reserve (PoR).
The mechanism is powered by off-chain reserves data sourced directly from Coinbase and enables on-chain reporting of reserve information via Chainlink oracles.
Ophelia Snyder, the Co-founder and President at 21 Shares US, said:
“This collaboration allows us to offer an unmatched level of insight and safety for our investors’ holdings for ARKB, reinforcing 21Shares’ commitment to leading the way in secure, transparent asset management.”
Transparency efforts
ARKB’s transparency efforts followed that of Bitwise, a Bitcoin ETF issuer that revealed the on-chain address for its BITB’s BTC holdings in January. Industry experts widely lauded this initiative, urging other ETF issuers to adopt similar transparency measures.
Snyder said the firm’s decision sets a “new standard for combining transparency and security” in digital asset management.
Johann Eid, the Chief Business Officer at Chainlink Labs, added:
“Chainlink Proof of Reserve is not just enhancing the security and transparency of the ARK 21Shares Bitcoin ETF, but also empowering institutions and market participants with the confidence to actively engage with onchain finance.“
Since the US SEC approved several Bitcoin ETFs for trading in January, these investment vehicles have experienced a sustained positive trajectory and massive adoption, marked by notable milestones like recording their third-largest day of net inflows on Feb. 27.
Notably, ARKB is one of the top performers among launched spot Bitcoin ETFs. However, it trails behind BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Trust (FBTC) in terms of assets under management (AuM). Presently, the ETF holds over 33,000 units of the flagship digital asset, valued at approximately $2 billion.
Mentioned in this article
Bitcoin 
Chainlink 
Ark Invest 
21shares 
Coinbase 
BlackRock 
Fidelity Investments 
Fidelity Wise Origin Bitcoin Trust 
ARK 21Shares Bitcoin ETF iShares Bitcoin Trust Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Chainlink
$14.4417
Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
Ark Invest
ARK Investment Management LLC (ARK Invest) holds a precision lens on thematic investing.
21shares
21Shares is a Swiss provider of crypto- currency exchange-traded products (ETPs).
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.
The ARK 21Shares Bitcoin ETF (ARKB) is a digital asset ETF that seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant (the “Index”).
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.