By
Bena Ilyas
April 26th, 2024
The move by Ark Invest and 21Shares to integrate with the Chainlink network will help level up transparency and confidence in ARKB.
The heightened competition among the spot Bitcoin exchange-traded fund (ETF) issuers has compelled individual fund managers to innovate their services to attract more investors. Having reduced operating costs to obtain an operating edge, Ark Investment Management LLC and 21Shares announced a strategic partnership with the Chainlink (LINK) network to help provide transparency.
Notably, the ARK 21Shares Bitcoin ETF (ARKB) is now integrated with Chainlink’s proof of reserve to verify holdings data.
As a result, anyone can verify ARKB’s Bitcoin holdings through the Chainlink oracles. The move by ARKB issuer to enhance transparency is expected to be replicated by other spot Bitcoin ETF issuers.
Moreover, the Bitwise Bitcoin ETF (BITB) has also moved in the same direction by disclosing the Bitcoin address for its holdings.
“This collaboration allows us to offer an unmatched level of insight and safety for our investors’ holdings for ARKB,” Ophelia Snyder, co-founder and president at 21Shares, noted.
The announcement coincided with a notable cash inflow in the ARKB, thus clocking more than 33,247 Bitcoins worth about $2 billion in Assets Under Management. Consequently, ARKB now joins BlackRock Inc.’s (NYSE: BLK) iShares Bitcoin Trust (IBIT), Grayscale Investment’s Grayscale Bitcoin Trust (GBTC), and Fidelity Wise Bitcoin Origin Bitcoin Fund (FBTC) in the same category.
The ARK 21Shares Bitcoin ETF has reached an extraordinary milestone, surpassing $2 Billion USD in assets under management! $ARKB Page: https://t.co/SwwL8slIim
ARKB Prospectus: https://t.co/PXs1HZQHVn pic.twitter.com/ER5RVLE4mJ— ARK Invest (@ARKInvest) February 28, 2024
Spot Bitcoin ETFs Trigger Early Crypto Bull Run
The approval of spot Bitcoin ETFs in the United States has triggered a huge turning point for the cryptocurrency’s mass adoption. The overall crypto liquidity has significantly improved as more investors increase their digital asset holdings. Furthermore, the combined spot Bitcoin ETF issuers have been accumulating around 10k Bitcoins daily compared to about 900 coins produced by miners per day.
Notably, the supply vs demand shock will be significantly exaggerated after the fourth halving, which will reduce the annual inflation below 1 percent. Consequently, the ongoing Bitcoin price rally is expected to move further in the coming quarters.
According to the latest market data, Bitcoin price rallied more than 9 percent in the past 24 hours to reach a new yearly high of around $64k. As a result, Bitcoin price is well positioned to revisit the all-time high (ATH) of around $69k in the coming days. Moreover, there is no other major Bitcoin resistance after the bulls smashed the range between $57k and $60k in the past 24 hours.
Meanwhile, the altcoin market has also registered notable gains as analysts forecast an inevitable approval of spot Ethereum ETFs in the coming months. With the US Fed expected to cut its interest rates later this year amid the upcoming elections in 2024, the confirmed crypto bull rally is expected to continue for the next two years.