21Shares Ethereum ETF Integrates Chainlink System to Enhance Transparency

Key Points:

• The 21Shares Ethereum ETF has now integrated Chainlink’s Proof-of-Reserve system to improve transparency and allow real-time tracking of ETH reserves.
• The integration follows the launch of the first spot Ether ETFs in the U.S., a key step for cryptocurrency adoption.

21Shares has integrated the Chainlink proof-of-reserve system into its Core Ethereum Exchange-Traded Fund for enhanced transparency and higher confidence among investors.

Read more: Chainlink Fund Tokenization Pilot Successful With Large Banks Participating

21Shares Ethereum ETF Gets Enhanced Transparency with Chainlink Integration

The step will attempt to provide real-time data about the Ethereum reserves backing the 21Shares Ethereum ETF (CETH) to ensure that CETH replicates the performance of the second-largest cryptocurrency by market capitalization.

It provides the most updated information about reserves to 21Shares Ethereum ETF investors through an off-chain feed from Coinbase, which helps in the integrity of the assets while avoiding central points of failure in data delivery. According to Johann Eid, chief business officer of Chainlink Labs, "21Shares is playing an important role in supporting the adoption of digital assets, and the Chainlink platform is helping financial institutions realize the vision of seamless tokenization on a global scale."

Spot Ether ETFs Launch Marks Milestone for Crypto Adoption

The new transparency features come just days after the historic launch of the first spot Ether ETFs in the United States on July 23. This, according to Ophelia Snyder, Co-founder and President of 21Shares, is one great move into the mainstream for cryptocurrency adoption, having the potential to affect decentralized finance in payments. According to Snyder, the implementation of Chainlink's PoR system was quite logical following the successful integration in the 21Shares spot Bitcoin ETF.

The integration of Chainlink's PoR system offers many benefits, including automation of on-chain verification and decentralization. It makes independent and real-time validation of the collateralization of 21Shares Ethereum ETF possible, and it enhances transparency that fosters investor trust.

It also emerges that another similar cryptocurrency ETF management company has been established by Franklin Templeton and SBI Holdings. BlackRock has, on its part, warned of fast-rising cases of cryptocurrency investment scams and exhorted investors to be vigilant and cautious.