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Enhanced Transparency in Bitcoin ETFs: Ark Invest and 21Shares Lead the Way
Asset managers Ark Invest and 21Shares have taken a significant step towards enhancing transparency for their ARK 21Shares Bitcoin ETF (ARKB). Last Wednesday, they announced the integration of Chainlink’s Proof of Reserve platform, a move that aims to provide investors with unprecedented insight and safety regarding their holdings in ARKB.
Chainlink’s Role in Enhancing Transparency
Chainlink, a decentralized oracle network, plays a pivotal role in this initiative. By integrating Chainlink’s Proof of Reserve platform, ARKB aims to verify its holdings data, aligning with Chainlink’s mission to enable secure and reliable interactions with external data feeds, APIs, and traditional payment systems. This move follows Bitwise’s transparency efforts, positioning ARKB as the second spot bitcoin ETF to bring holdings data on-chain.
Industry Recognition and Success of ARKB
The industry has widely praised this move, recognizing the commitment of Ark Invest and 21Shares to transparency and investor safety. ARKB has been notably successful among the ten spot bitcoin ETFs launched on January 11, accumulating 33,274 bitcoin and boasting assets under management exceeding $1.8 billion. As of Monday’s close, it ranked 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.
Bitwise’s Precedent and Commitment
Bitwise, a leader in the spot Bitcoin ETF market, set a precedent in January by revealing its digital wallet address, making its holdings and flows publicly visible. This move was widely acclaimed by industry insiders and the wider crypto community. Furthermore, Bitwise demonstrated a robust commitment to the sector’s growth and sustainability by committing to donating 10% of its spot Bitcoin ETF profits back into the blockchain industry.
Chainlink’s Performance
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.
Conclusion
The integration of Chainlink’s Proof of Reserve platform by Ark Invest and 21Shares marks a significant milestone in the quest for transparency and safety in the Bitcoin ETF market. This move not only enhances investor confidence but also sets a standard for other issuers to follow. With the success of ARKB and the industry recognition of these transparency efforts, it is evident that the future of Bitcoin ETFs is moving towards a more transparent and secure direction.
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