21Shares Integrates Chainlink Proof of Reserve to Increase Transparency of ARK 21Shares

NEW YORK, Feb. 28, 2024 /PRNewswire/ — We’re excited to announce that 21Shares has integrated the industry-standard Chainlink Proof of Reserve on Ethereum mainnet to enhance the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF.

We chose Chainlink as our preferred decentralized computing platform due to its proven history of enabling $9T+ in total value for decentralized markets and securely delivering 11.8B+ data points onchain. Additionally, Chainlink Proof of Reserve is our recommended service for tokenized asset issuers looking to bring reserve data onchain because of its ease of integration and ubiquitous adoption across the blockchain ecosystem.

21Shares US LLC (“21Shares”) and ARK Investment Management LLC (“ARK”), launched the ARK 21Shares Bitcoin ETF, ARKB—a leading spot Bitcoin exchange-traded fund (ETF) with over 1.58B in net assets since launch in January 2024. As the first decentralized currency, Bitcoin is the largest digital asset by market cap today and is well-established as a digital store of value with broad user adoption and liquidity. ARKB offers a regulated vehicle for this strategic asset, providing investors with regulated access to this leading digital asset without the complexities of trading or storing it themselves.

21Shares seamlessly balances security and transparency in its operations. Through the integration of Chainlink’s market leading Proof of Reserve solution, 21Shares offers clear visibility into ARKB’s Bitcoin reserves. Enhanced security measures, including segregated wallets, multi-sig protocols, and cold storage, ensure these holdings are transparent yet secure, maintaining asset integrity and building investor trust.

With ARKB’s underlying Bitcoin reserve and reserve history publicly available through Chainlink Proof of Reserve, ARKB investors now have increased assurances and confidence that ARKB is fully backed by Bitcoin holdings. This PoR feed is a type of offchain reserves feed that pulls reserves data directly from Coinbase. As Coinbase has direct access to the accounts or vaults holding the reserve assets, it can calculate the total value of reserves and report the data onchain via Chainlink oracles.

Some benefits of Proof of Reserve include:

  • Automated Onchain Verification — By keeping an up-to-date reference contract, investors can access automatic and frequent updates on ARKB’s underlying Bitcoin collateralization.
  • Decentralized — Chainlink Proof of Reserve eliminates central points of failure in delivering external data to blockchains, helping ensure reliable onchain updates at all times regarding ARKB’s collateralization.
  • Transparent — Chainlink Proof of Reserve Feeds can be monitored by anyone in near real-time, allowing investors to verify asset collateralization independently.

“We’re excited to collaborate with 21Shares as they help to reimagine the way that the world interacts with tokenized assets and scale accessibility to the masses,” said Johann Eid, Chief Business Officer at Chainlink Labs. “By providing real-time, tamper-proof data on Bitcoin reserves, Chainlink Proof of Reserve is not just enhancing the security and transparency of the ARK 21Shares Bitcoin ETF, but also empowering institutions and market participants with the confidence to actively engage with onchain finance.”––Johann Eid, Chief Business Officer, Chainlink Labs.

“By integrating Chainlink, the industry leader in Proof of Reserves for tokenized assets, we’re setting a new standard for combining transparency and security in digital asset management. This collaboration allows us to offer an unmatched level of insight and safety for our investors’ holdings for ARKB, reinforcing 21Shares’ commitment to leading the way in secure, transparent asset management.”— Ophelia Snyder, Co-founder and President at 21 Shares US.

About Chainlink
Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $9 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

About 21Shares US LLC
21Shares US LLC serves as the sponsor to the ARK 21Shares Bitcoin ETF. 21Shares US LLC is an affiliate of 21Shares AG, one of the world’s leaders in providing access to crypto through TradFi and DeFi. 21Shares AG issues cryptocurrency-backed exchange traded products (ETPs) outside the United States in a number of global markets. 21Shares AG’s ETPs are built on its proprietary operating system, Onyx, which is also available to third parties. For more information, please visit www.21Shares.com/en-US.

Important Information
The fund is subject to significant risk. The fund is subject to heightened volatility. An investor may lose all their money. The fund is not suitable for all investors.

This material must be accompanied or preceded by a prospectus. Carefully consider the Trust’s investment objectives, risk factors, and fees and expenses before investing. For future discussion of the risks associated with an investment in the Trust please read the Trust’s prospectus.

Investing involves risk, including the possible loss of principal. There is no assurance that the Trust will generate a profit for investors. The Trust may not be suitable for all investors.

The Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Trusts focusing on a single asset generally experience greater volatility. There are special risks associated with short selling and margin investing. Please ask your financial advisor for more information about these risks.

Bitcoin is a relatively new asset class, and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin is subject to unique and substantial risks, including significant price volatility and lack of liquidity, and theft. The value of an investment in the Trust could decline significantly and without warning, including to zero.     

Bitcoin is subject to rapid price swings, including as a result of actions and statements by influencers and the media, changes in the supply of and demand for bitcoin, and other factors. There is no assurance that bitcoin will maintain its value over the long-term.

Failure by the Trust’s Bitcoin Custodian to exercise due care in the safekeeping of the Trust’s bitcoin could result in a loss to the Trust. Shareholders cannot be assured that the Bitcoin Custodian will maintain adequate insurance with respect to the Bitcoin held by the custodian on behalf of the Trust.

The Trust is not actively managed and will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of bitcoin.

An investment in the Trust is not a direct investment in bitcoin. Investors will also forgo certain rights conferred by owning bitcoin directly.

Shares of the Trust are generally bought and sold at market price (not NAV) and are not individually redeemed from the Trust. Only Authorized Participants may trade directly with the Trust and only large blocks of Shares called “creation units.” Your brokerage commissions will reduce returns.

Shares in the Trust are not FDIC insured and may lose value and have no bank guarantee.

This material must be accompanied or preceded by a prospectus. Carefully consider the Trust’s investment objectives, risk factors, and fees and expenses before investing. For further discussion of the risks associated with an investment in the Trust please read the Trust’s prospectus.

The Marketing Agent is Foreside Global Services, LLC.
21Shares US LLC is the Sponsor to the ARK 21Shares Bitcoin ETF.
21Shares is not affiliated with Quasar Distributors, LLC.
21Shares is not affiliated with ARK Investment Management LLC.
As sub-adviser to the Funds, ARK Invest provides assistance in the marketing of the Shares.

© 2023. 21Shares US LLC. No part of this material may be reproduced in any form, or referred to in any other publication, without written permission.

Press Contacts:
21Shares: [email protected]

SOURCE 21Shares



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