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 ChainlinkChainlink 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 LLC21Shares 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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