NEW YORK, July 29, 2024 -- 21Shares US LLC ("21Shares"), an affiliate of 21Shares AG, one of the world’s largest issuers of crypto exchange traded products (ETPs), today announced that the firm has integrated the industry-standard Chainlink Proof of Reserve on Ethereum mainnet to enhance the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH). CETH is physically backed by Ether (ETH), the second-largest crypto asset by market capitalization, and tracks ETH’s performance. In addition, CETH represents 21Shares’ latest addition to its growing lineup of US products and underscores the firm’s growth and commitment to the US market.
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.
21Shares selected Chainlink as the firm’s preferred decentralized computing platform due to Chainlink’s proven history enabling over $12tn in total value for onchain markets. Through the integration of Chainlink's industry-standard Proof of Reserve solution, 21Shares offers clear visibility into the underlying ETH reserves of CETH, providing investors with increased assurances and confidence that CETH is backed by underlying ETH holdings. Chainlink Proof of Reserve makes the real-time reserve data and reserve history publicly available through an offchain reserves feed that pulls reserves data directly from Coinbase – ensuring holdings are transparent yet secure, maintaining asset integrity, and building investor trust.
Some of the main benefits of Proof of Reserve include:
- Automated Onchain Verification — Keeping up-to-date onchain data in a reference contract introduces programmatic utility through which investors and protocols can build automated logic based on updates to CETH’s underlying 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 CETH’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 further our collaboration with 21Shares and support a major milestone in our industry’s history by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve,” said Johann Eid, Chief Business Officer of Chainlink Labs. “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.”
“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,” said Ophelia Snyder, Co-Founder and President of 21Shares. “Chainlink Proof of Reserve has already been helping to enhance the transparency of our spot Bitcoin ETP since its initial launch, making the decision to leverage Chainlink’s industry-standard reserves verification service for our spot Ethereum ETP, CETH, a no-brainer.”
In February 2024, 21Shares announced the integration of Chainlink Proof of Reserve to enhance the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF. The ARK 21Shares Bitcoin ETF, ARKB, a leading spot Bitcoin ETP backed by Bitcoin, was launched in January 2024 and currently has $3.2bn in assets under management (AUM).
About Chainlink
Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $12 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 21Shares Core Ethereum 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
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.
Ether is a relatively new asset class, and the market for ether is subject to rapid changes and uncertainty. Ether is largely unregulated and ethereum investments may be more susceptible to fraud and manipulation than more regulated investments. Ether 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.
Ether 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 ether, and other factors. There is no assurance that ether will maintain its value over the long-term.
Failure by the Trust’s Ether Custodian to exercise due care in the safekeeping of the Trust’s ether could result in a loss to the Trust. Shareholders cannot be assured that the Ether Custodian will maintain adequate insurance with respect to the ether 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 ethereum.
An investment in the Trust is not a direct investment in ethereum. Investors will also forgo certain rights conferred by owning ethereum 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 (link to the prospectus once live). 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 Trust.
21Shares is not affiliated with Foreside Global Services, LLC.
© 2024. 21Shares US LLC. No part of this material may be reproduced in any form, or referred to in any other publication, without written permission.
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