Asset manager 21Shares took its spot Ethereum ETF business a notch higher than its counterparts with the integration of the industry-standard Chainlink Proof of Reserve.
Chainlink Helps 21Shares Deliver VisibilityÂ
On Monday, 21Shares announced that it has integrated the industry-standard Chainlink Proof of Reserve on the Ethereum mainnet. The aim is to enhance the transparency of the Ethereum reserves backing the recently approved 21Shares Core Ethereum ETF (CETH). The decision to leverage Chainlink comes from the protocol’s stellar footprint.Â
Per the published statement, Chainlink has a track record of enabling over $12 trillion in total value for on-chain markets. Hence, 21Shares saw it as the perfect platform to help it offer clear visibility into the underlying ETH reserves of CETH. By this means, it would provide investors with increased assurances and confidence that CETH is backed by underlying ETH holdings.
Like every other crypto Exchange Traded Products (ETPs), CETH provides traditional investors with the opportunity to invest in Ethereum without getting exposed to the risks associated with the digital asset. It is physically backed by Ethereum and therefore, tracks the performance of the second largest cryptocurrency by market cap.Â
Noteworthy, 21Shares took this same step with Bitcoin ETFs in February. The investment asset management firm integrated the Chainlink Proof of Reserve to enhance the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF.
CETH Registers $8.7M on Trading Day 1
Meanwhile, CETH contributed to the $1.1 billion trading volume that United States spot Ethereum ETFs recorded on debut day.Â
Precisely, Grayscale’s Ethereum Trust (ETHE) recorded a volume of $469.7 million worth of shares traded. BlackRock’s iShares Ethereum Trust (ETHA) followed closely behind with around $258.6 million. Fidelity’s Advantage Ethereum ETF recorded about $137.9 million in volume.
Bitwise’s Ethereum ETF bagged $94.3 million while Invesco Galaxy and 21Shares recorded $17.1 million and $8.7 million respectively.
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