21Shares has integrated Chainlink’s proof-of-reserve (PoR) system into its Core Ethereum exchange-traded fund (ETF), aiming to bolster transparency and trust in its crypto offerings.
Enhancing Trust Through Proof-of-Reserves
As one of the world’s largest issuers of cryptocurrency exchange-traded products (ETPs), 21Shares seeks to increase credibility for its physically-backed Ether (ETH) ETF by incorporating Chainlink’s PoR system. The move is designed to offer more transparency and reinforce investor confidence.
Johann Eid, Chief Business Officer at Chainlink Labs, highlighted the significance of this integration:
“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.”
This integration follows the launch of the first spot Ether ETFs in the United States, which began trading on July 23. The approval of these ETFs is a milestone in cryptocurrency adoption.
Impact on Cryptocurrency Adoption
Ophelia Snyder, Co-Founder and President of 21Shares, emphasized the importance of this development:
“The 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.”
The integration of Chainlink’s PoR system into the Ether ETF aligns with 21Shares’ previous use of the same solution for its spot Bitcoin (BTC) ETF. According to Snyder, the addition of PoR to the Ether ETF was a logical next step:
“Integrating Chainlink’s PoR solution into our Ether ETF was a no-brainer, given our successful implementation with the Bitcoin ETF.”
The approval of Ether ETFs in the US could set a precedent for the approval of more crypto ETFs globally. This milestone may pave the way for similar products in other regions, contributing to the broader adoption of decentralized finance (DeFi) and cryptocurrency investments.
- Franklin Templeton and SBI Holdings: These two companies have formed a new joint venture focused on managing crypto ETFs. According to a Franklin Templeton spokesperson, the joint venture aims to launch a crypto ETF in Japan as soon as regulatory frameworks allow.Expected Developments:EntityPlanned ActionNotesFranklin Templeton & SBI HoldingsLaunch crypto ETF in JapanSubject to regulatory approvalPotential Spot Solana ETFExploring launchGrowing interest in Solana cryptocurrency
- Franklin Templeton’s Interest in Solana: The company is also considering launching a spot Solana (SOL) ETF, driven by the increasing adoption of the cryptocurrency.
The integration of Chainlink’s PoR system into 21Shares’ Ether ETF is a significant development, aimed at enhancing transparency and investor trust. This move not only solidifies 21Shares’ commitment to transparency but also aligns with the broader trend of increasing institutional interest in digital assets.
The ongoing advancements in cryptocurrency ETFs underscore the evolving landscape of digital asset investments and the growing focus on regulatory compliance and transparency.
Featured image credit: Vitaly Mazur via Unsplash
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