Chainlink Eyes Transparency Boost with ARK Bitcoin ETF Integration; LINK Eyes Breakout

21Shares and Ark Investment, the minds behind the ARK Bitcoin ETF (ARKB), have joined forces with Chainlink to implement a novel standard for transparency and security in the realm of tokenized assets.

Chainlink’s PoR Verifies ARKB Bitcoin Reserves

The driving force behind this integration is Chainlink’s Proof of Reserve (PoR) solution. This secure and transparent system verifies the actual Bitcoin holdings that back the ARKB ETF.

Through direct connections to Coinbase’s data feeds, Chainlink’s PoR automatically updates the on-chain reference contract, reflecting the total value of ARKB’s Bitcoin reserves. Johann Eid, Chief Business Officer at Chainlink Labs, emphasizes, “By providing real-time, tamper-proof data on Bitcoin reserves, Chainlink Proof of Reserve is not just enhancing the security and transparency of the ARK 21Shares Bitcoin ETF, but also empowering institutions and market participants with the confidence to actively engage with on-chain finance.”

This integration offers several advantages. Firstly, ARKB ETF investors gain access to “frequent updates” on the collateralization of the underlying Bitcoin holdings, eliminating the need for manual verification. Secondly, Chainlink’s decentralized oracle network bolsters the reliability and resilience of the Proof of Reserve data. By eliminating central points of failure, the system ensures trusted on-chain updates at all times, leading to increased overall security for the ARKB Bitcoin ETF.

Most importantly, Chainlink’s PoR grants ARKB Bitcoin ETF investors the ability to independently verify the asset collateralization. Ophelia Snyder, co-founder and president of 21 Shares US, highlights, “By integrating Chainlink, the industry leader in Proof of Reserves for tokenized assets, we’re setting a new standard for combining transparency and security in digital asset management.”

Chainlink (LINK) Technical Analysis

Technical analysis of Chainlink indicates a potential breakout from a symmetrical triangle pattern, suggesting a significant price movement could be imminent. The cryptocurrency is currently trading near the apex of this pattern, with immediate resistance around $16.00 and strong support at $12.00.

While recent price action has shown indecision, with small-bodied candlesticks and a relatively flat RSI, the possibility of a bullish crossover in the MACD suggests potential upward momentum.

A break above the $16.00 resistance level accompanied by increasing trading volume and a confirmed MACD bullish crossover could signal the start of an upward trend. Conversely, a breakdown below the $12.00 support level might indicate further downside, with the $10.00 level serving as a critical support area.