Ark Invest and 21Shares have incorporated Chainlink Proof of Reserve on the Ethereum mainnet to enhance transparency for the ARK 21Shares Bitcoin ETF (ARKB), as stated on Feb. 28.

This integration enables investors in ARKB to authenticate that the ETF's Bitcoin reserves fully back its valuation. Chainlink Proof of Reserve (PoR) facilitates this transparency by granting public access to the underlying Bitcoin reserve and its historical data.

This process utilizes off-chain reserves data from Coinbase and allows on-chain reporting of reserve information via Chainlink oracles.

Ophelia Snyder, the Co-founder and President at 21 Shares US, emphasized the significance of this collaboration in providing unparalleled insight and security for ARKB investors, underscoring 21Shares' dedication to transparent asset management.

Following Bitwise's lead, which disclosed the on-chain address for its BITB's BTC holdings in January, ARKB's transparency initiatives have been well-received by industry experts, who encourage other ETF issuers to adopt similar measures.

Snyder regards this decision as setting a new benchmark for blending transparency and security in digital asset management.

Johann Eid, the Chief Business Officer at Chainlink Labs, highlighted that Chainlink Proof of Reserve not only bolsters the security and transparency of the ARK 21Shares Bitcoin ETF but also instills confidence in institutions and market participants to engage with on-chain finance actively.

Since the US SEC's approval of several Bitcoin ETFs for trading in January, these investment vehicles have witnessed significant adoption and a positive trajectory, evident in milestones like recording their third-largest day of net inflows on Feb. 27.

ARKB stands out as one of the top-performing spot Bitcoin ETFs, although it lags behind BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Trust (FBTC) in terms of assets under management (AuM). Presently, the ETF holds over 33,000 units of the flagship digital asset, valued at approximately $2 billion.