VanEck Commits to Donating 5% of Bitcoin ETF Profits to Developers
Bitcoin ETF applicant VanEck has made a promise to donate 5% of its fund’s profits to Bitcoin Core developers if approved by the U.S. Securities and Exchange Commission (SEC). This commitment could provide much-needed financial support for the developers who often struggle with funding.
About VanEck
VanEck is an experienced ETF and mutual fund manager with $76.4 billion in assets under management. The company stated that it is dedicated to the long-term success of Bitcoin and has already made a $10,000 donation to developers.
Donations Through Brink
The donations from VanEck will be channeled through Brink, a non-profit organization that supports Bitcoin code testers and maintainers. Brink has partnerships with major crypto exchanges like BitMEX, Kraken, and Coinbase.
No Natural Funding for Bitcoin
Unlike other networks, Bitcoin does not have a natural source of funding or protocol maintenance. It was never funded by an ICO or dedicated foundation. This lack of funding has led to challenges for Bitcoin developers, including legal pressure from individuals like Craig Wright.
Potential Impact of VanEck’s Pledge
If approved, Bloomberg ETF analyst James Seyffart predicts that Bitcoin ETFs could attract $10 billion worth of inflows within the first year. Assuming VanEck captures 10% market share, their fund could bring in $1 billion worth of BTC in a year.
If VanEck charges a 0.8% fee like its competitors, it could generate $8 million in profit after the first year. With a 5% donation rate, Bitcoin developers could receive $400,000 in donations over ten years.
Hot Take: VanEck’s Pledge Supports Bitcoin Developers
The commitment from VanEck to donate a portion of its Bitcoin ETF profits to developers is a significant step in supporting the ongoing development and maintenance of the Bitcoin network. With the potential for substantial inflows into Bitcoin ETFs, this pledge could provide much-needed funding for developers who play a crucial role in the ecosystem. By partnering with Brink, VanEck ensures that the donations reach those working on code testing and maintenance. This initiative highlights the importance of financial support for the sustainability and innovation of decentralized networks like Bitcoin.
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