21Shares Integrates Chainlink Proof of Reserve to Increase Transparency of the 21Shares Core Ethereum ETF (CETH)

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.