21Shares' CETH integrates Chainlink Proof of Reserve to increase transparency

21Shares US LLC, an affiliate of 21Shares AG, has integrated the industry-standard Chainlink Proof of Reserve on the Ethereum ETH +1.93% mainnet to enhance the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (ticker CETH).

CETH is physically backed by Ether and tracks ETH’s performance.

21Shares selected Chainlink as the firm’s preferred decentralized computing platform because of Chainlink’s proven history of enabling over $12 trillion in total value for on-chain markets, according to the release.

"Through the integration of Chainlink's Proof of Reserve solution, 21Shares offers clear visibility into the underlying ETH reserves of CETH, providing investors with increased assurances and confidence that CETH is backed by underlying ETH holdings," the release said. "Chainlink Proof of Reserve makes the real-time reserve data and reserve history publicly available through an offchain reserves feed that pulls reserves data directly from Coinbase – ensuring holdings are transparent yet secure, maintaining asset integrity, and building investor trust."

In February, 21Shares announced the integration of Chainlink Proof of Reserve to enhance the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF. ARKB was launched in January and currently has $3.2 billion in assets under management.

"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,” said 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.”

CETH was one of nine spot Ethereum ETFs to debut last week . The new funds saw over $1 billion of net inflows into eight of the funds but were overwhelmed by $1.5 billion in net outflows from Grayscale’s ETHE.

“US approval of a spot Ethereum ETF serves as further evidence of crypto’s global momentum and adoption, bringing us one step closer to our mission to bridge the gap between traditional finance and decentralized finance,” said Ophelia Snyder, co-founder and president of 21Shares. “Chainlink Proof of Reserve has already been helping to enhance the transparency of our spot Bitcoin ETP since its initial launch, making the decision to leverage Chainlink’s industry-standard reserves verification service for our spot Ethereum ETP, CETH, a no-brainer.”