Global asset manager VanEck has made an announcement regarding its upcoming Ether futures exchange-traded fund (ETF). The company revealed that it will donate 10% of all profits from the ETF to Ethereum core developers for a duration of ten years. This move showcases VanEck’s commitment to giving back to the community that has contributed to the development of the Ethereum protocol.
VanEck’s decision to donate a portion of its profits aligns with the philosophy of other crypto-native communities that support the Ethereum network. These include prominent names such as Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO. These entities recognize the importance of contributing to the development of Ethereum and aim to provide financial support to help further its progress.
The chosen beneficiary of VanEck’s donation is The Protocol Guild, which consists of over 150 developers responsible for maintaining Ethereum’s core technology. The Guild plays a crucial role in the ongoing advancements and improvements in the Ethereum network. The funds donated by VanEck and other entities are distributed among the Guild members based on their contribution periods, ensuring a fair distribution of resources.
VanEck also disclosed its plans to launch the Ethereum Strategy ETF (EFUT), which will primarily invest in ether futures contracts. Greg Krenzer, head of active trading at VanEck, will actively manage the fund. The ETF is expected to be listed on the Chicago Board Options Exchange in the near future. This move demonstrates VanEck’s confidence in the potential of Ethereum and its commitment to providing investors with exposure to the cryptocurrency.
VanEck is not the only traditional investment firm venturing into the world of Ethereum and cryptocurrency. Other firms like Valkyrie and Bitwise are also set to offer exposure to Ether futures contracts. Additionally, there is a growing line of players waiting for regulatory approval to launch a spot Ether ETF, including Invesco Galaxy, ARK 21Shares, and VanEck themselves. The interest from these established financial institutions showcases the increasing acceptance and adoption of cryptocurrencies in the mainstream investment world.
VanEck’s decision to donate a portion of its profits to Ethereum core developers highlights the importance of community collaboration and support in the cryptocurrency space. By giving back to the developers responsible for maintaining and improving the Ethereum network, VanEck aims to foster a mutually beneficial relationship between traditional finance and the crypto community. This move sets an example for other asset managers and ETF issuers to consider contributing to the development of the protocols they benefit from. As the Ethereum ecosystem continues to evolve and attract attention from institutional investors, the support from established financial players will play a pivotal role in its long-term success.