VanEck to Donate 10% of Ethereum ETF Profits to Core Developers
VanEck, an asset manager, has announced that it will allocate 10% of the profits from its upcoming Ethereum (ETH) futures exchange-traded fund (ETF) to the Ethereum core developers for a decade. The Protocol Guild, a group consisting of over 150 developers responsible for maintaining Ethereum’s core technology, will benefit from this initiative. VanEck believes that asset managers should give back to the community that supports the crypto protocol. The company expressed its hope that other asset managers and ETF issuers would follow suit.
Growing Trend of Crypto Communities Supporting Ethereum
VanEck’s move aligns with the increasing trend of crypto-native communities providing support to the Ethereum network. Notable contributors include Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO. These contributions to the Guild’s mainnet have generated over $12 million from 4,846 donations. The funds are distributed among Guild members based on their contribution periods.
Ethereum Strategy ETF and Other Investment Firms
VanEck recently unveiled its Ethereum Strategy ETF (EFUT), which will invest in ether futures contracts. The fund will be actively managed by Greg Krenzer and listed on the Chicago Board Options Exchange soon. In addition to VanEck, other traditional investment firms are also planning to offer exposure to Ether futures. Valkyrie plans to offer Ether futures through its existing Bitcoin Strategy ETF. Bitwise submitted an updated prospectus for their equal-weight Bitcoin and Ether futures ETF, expecting it to go live next week. Kelly ETFs and Hashdex have partnered to deliver futures Ether ETFs in the near future. Invesco and Galaxy Digital filed for a spot Ether ETF, but the SEC delayed its decision until December.
Expectations for Ether ETF Approval
While the approval of spot Ether products has been delayed, there are speculations that futures-based Ether ETFs may become available as early as next week. Reports suggest that the SEC may accelerate the approval process in early October, generating significant interest among asset managers who want to participate.
Hot Take: VanEck Sets an Example for Supporting Ethereum Core Developers
VanEck’s decision to donate a portion of its Ethereum ETF profits to the core developers is a commendable move that sets an example for other asset managers. By giving back to the community that builds and supports the crypto protocol, VanEck demonstrates its commitment to the long-term success of Ethereum. This initiative aligns with the growing trend of crypto-native communities supporting the Ethereum network. It also highlights the importance of recognizing and rewarding the efforts of developers who maintain and improve the core technology behind blockchain networks. VanEck’s action serves as a reminder that asset managers have a responsibility to contribute to the development and sustainability of the crypto ecosystem.
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