This integration, announced on July 29, aims to use technology that will provide access to proof-of-reserve data of the 21Shares Core Ethereum ETF (CETH). This technology provided by Chainlink aims to increase investment security and transparency by clearly showing investors the status of Ethereum reserves.

21Shares’ CETH stands out as one of the spot Ethereum ETFs launched last week with final approval from the U.S. Securities and Exchange Commission (SEC).

While this ETF offers investors the opportunity to invest directly in Ethereum, it also aims to guarantee the accuracy and integrity of the assets behind the fund thanks to the proof of reserve feature provided by Chainlink.

Chainlink is known as a major player in the crypto world, a platform that has transferred more than $12 trillion in on-chain value.

Commenting on this collaboration, Johann Eid, Business Development Manager at Chainlink Labs, said: “We are excited to further our collaboration with 21Shares and bring greater transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve.”

Eid stated that this integration aims to support broader adoption of crypto assets and the entry of financial institutions into this space through tokenization. Chainlink’s technology promises to offer investors a more secure and transparent investment environment by showing them how much Ethereum reserves their funds actually have.

21Shares explained in its blog post why it chose Chainlink as a decentralized computing platform. The company emphasized Chainlink’s strong influence in the industry and the reliability of the proof of reserve service it provides. This technology offered by Chainlink allows investors to verify the authenticity of the ETH reserves behind CETH, while at the same time strengthening the trust of investors by increasing the transparency of the fund.

It is stated that this integration creates a similar effect for the spot Bitcoin ETF ARKB, where 21Shares previously used Chainlink’s Proof of Reserve (PoR) feature. ARKB was launched by ARK 21Shares in January 2024 and currently has an asset management volume of approximately $3.2 billion.

According to SosoValue data, ARKB has recorded cumulative net inflows of $2.6 billion so far. This shows how important a role Chainlink’s PoR feature plays for both Bitcoin and Ethereum ETFs.

This collaboration between Chainlink and 21Shares is considered an important step aiming to raise transparency and security standards in the crypto market. Such integrations are critical to enable investors to have more information about digital assets and make more informed investment decisions.

Increasing reliable and transparent investment products for investors contributes to the maturation of crypto markets and their reach to a wider audience.