A Commitment to Ethereum Development
Asset management firm Vaneck has announced a new initiative to allocate 10% of its ethereum exchange-traded fund (ETF) profits towards the development of the Ethereum protocol. The funds will be donated to the Protocol Guild, a consortium of over 150 core Ethereum developers, to support their efforts in refining and expanding the protocol. Vaneck expressed gratitude to the Ethereum contributors for their ongoing work and stated that this commitment will last for at least ten years.
The Role of the Protocol Guild
The Protocol Guild consists of more than 150 Ethereum core developers, as evidenced by an onchain registry. Their primary goal is to enhance the incentives for stewarding the core protocol. Vaneck highlighted the crucial contributions made by these developers in implementing important updates like The Merge and Shanghai.
Reciprocity between Tradfi and Ethereum
Vaneck emphasized that if traditional finance (tradfi) benefits from the advancements made in Ethereum development, it is only fair for tradfi to give back. The firm stated that by contributing to the work of Ethereum’s core contributors, they are acknowledging their impact on the industry. Vaneck encouraged other asset managers and ETF issuers to follow suit and consider supporting Ethereum development in a similar manner.
Vaneck’s Ethereum ETF
Vaneck currently operates an ethereum futures ETF called EFUT, which trades cash-settled futures on the Chicago Mercantile Exchange (CME). However, Vaneck has also filed for a physically-settled ether ETF and a spot bitcoin ETF. Other firms like Ark Invest and 21shares have also submitted filings for physically settled ETH ETFs, all awaiting regulatory approval.
Hot Take: A Bold Move towards Long-Term Growth
Vaneck’s commitment to allocating a portion of its ETF profits towards Ethereum development showcases a bold move by an asset management firm to contribute to the growth and refinement of the Ethereum protocol. By supporting the Protocol Guild, Vaneck aims to foster innovation and ensure the long-term success of Ethereum. This initiative not only highlights the importance of collaboration between traditional finance and blockchain technology but also sets a precedent for other industry players to consider similar contributions.
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