Spot Bitcoin ETFs Embrace Transparency: The Role of Chainlink Integration

• Ark Invest and 21Shares enhance ARKB’s transparency by integrating Chainlink’s Proof of Reserve, a pivotal move in blockchain innovation.
• This initiative follows Bitwise’s transparency efforts, marking ARKB as the second spot bitcoin ETF to bring holdings data on-chain.

Asset managers Ark Invest and 21Shares announced last Wednesday their step towards enhanced transparency for their ARK 21Shares Bitcoin ETF (ARKB) by integrating Chainlink’s Proof of Reserve platform. This platform verifies holdings data, aligning with Chainlink’s mission as outlined in a recent Crypto News Flash update.

Chainlink, a decentralized oracle network, significantly enhances smart contract capabilities by enabling secure and reliable interactions with external data feeds, APIs, and traditional payment systems.

A recent Yahoo Finance post highlighted that this move comes after fellow spot bitcoin ETF issuer Bitwise disclosed its digital wallet address in January, showcasing the holdings for its Bitwise Bitcoin ETF (BITW). This effort to provide transparency was widely praised by industry experts, positioning Ark/21Shares as the second issuer to make holdings data accessible on-chain.

Ophelia Snyder, co-founder and president of 21Shares, confirmed this update, stating,

This collaboration allows us to offer an unmatched level of insight and safety for our investors’ holdings in ARKB.

ARKB has been notably successful among the ten spot bitcoin ETFs launched on January 11. As of Monday’s close, the fund had accumulated 33,274 bitcoin and boasted assets under management exceeding $1.8 billion, ranking third among issuers, trailing only behind Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) in terms of capital attraction.

This development mirrors an earlier initiative by Bitwise, a leader in the spot Bitcoin ETF market. Bitwise set a precedent in January by revealing its digital wallet address, thus making its holdings and flows publicly visible—a move that received acclaim from both industry insiders and the wider crypto community.

Furthermore, Bitwise committed to donating 10% of its spot Bitcoin ETF profits back into the blockchain industry, demonstrating a robust commitment to the sector’s growth and sustainability.

During this period, Chainlink (LINK) saw a notable increase, surging over 3.90% in the past day and 7.32% in the past week, reaching a high of over $20.00.