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Enhancing Transparency and Security for ARKB Investors
Asset managers Ark Invest and 21Shares have recently announced a collaboration aimed at increasing transparency and security for their ARK 21Shares Bitcoin ETF (ARKB). Through the integration of Chainlink’s Proof of Reserve platform, the ETF seeks to provide investors with real-time, verifiable insights into its holdings.
Integration of Chainlink’s Proof of Reserve
Announced on Wednesday, the collaboration involves the integration of Chainlink’s Proof of Reserve on the Ethereum network to enhance the transparency of ARKB’s reserves. Ophelia Snyder, co-founder and president at 21Shares, emphasized the significance of this integration, stating that it sets a new standard for combining transparency and security in digital asset management.
Ensuring Security and Transparency
21Shares has implemented enhanced security measures such as segregated wallets, multi-sig protocols, and cold storage to ensure transparent yet secure holdings. Through Chainlink’s Proof of Reserve solution, the company provides clear visibility into ARKB’s Bitcoin reserves, enabling investors to verify that the holdings fully back the ETF.
Benefits of Proof of Reserve
The integration of Chainlink’s Proof of Reserve offers automated on-chain verification, decentralized delivery of external data to blockchains, and transparent monitoring in near real-time. This collaboration reinforces 21Shares’ commitment to leading the way in secure, transparent asset management.
Bitcoin’s Market Cap and ARKB’s Regulatory Vehicle
Bitcoin, as the first decentralized currency, holds the largest market cap in the digital asset space and is widely recognized as a digital store of value with extensive user adoption and liquidity. ARKB provides a regulated vehicle for investors to access this strategic asset, offering regulated exposure to Bitcoin without the complexities of self-trading or storage.
Industry Trends and Adoption
The decision to integrate Chainlink’s Proof of Reserve platform follows a similar move by fellow spot bitcoin ETF issuer Bitwise, demonstrating a trend toward increased transparency in the market. With this integration, Ark/21Shares becomes the second issuer to bring holdings data on-chain, further enhancing transparency and accountability. ARKB has demonstrated success since its launch, amassing significant assets under management and attracting investor capital.
It’s worth noting that the adoption of Chainlink’s Proof of Reserve extends beyond ARKB, with other web3 projects integrating the solution, solidifying its position as a trusted transparency and verification tool in the digital asset space.