Global asset manager VanEck has announced that it will donate 10% of the profits from its upcoming Ether futures exchange-traded fund (ETF) to Ethereum core developers for a period of ten years. The beneficiary of this donation will be The Protocol Guild, a group of over 150 developers who are responsible for maintaining Ethereum’s core technology. VanEck believes that it is only fair for asset managers to give back to the community that builds and supports the crypto protocol. The company has urged other asset managers and ETF issuers to consider adopting a similar approach.
This move by VanEck aligns with the growing trend of crypto-native communities supporting the Ethereum network. Other organizations such as Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO have also pledged their support to the Ethereum network. The support garnered by the Guild has been impressive, with over $12 million in donations generated from 4,846 contributions. These funds are then distributed among the Guild members based on a weighted ratio determined by their contribution periods.
The Ethereum core developers are currently working on Ethereum Improvement Proposal EIP-4844, also known as Proto-Danksharding. This upgrade aims to introduce a new transaction type to Ethereum that will reduce transaction fees for layer-2 protocols. This development is highly anticipated within the Ethereum community as it has the potential to significantly improve the scalability and efficiency of the network.
VanEck’s upcoming Ethereum Strategy ETF (EFUT) was announced on September 28th. The ETF will invest in ether futures contracts and will be actively managed by Greg Krenzer, the head of active trading at VanEck. The ETF is expected to be listed on the Chicago Board Options Exchange in the near future. Other traditional investment firms such as Valkyrie and Bitwise are also planning to offer exposure to Ether futures. Additionally, there is a growing queue of companies awaiting regulatory approval to launch spot Ether ETFs, including Invesco Galaxy, ARK 21Shares, and VanEck.
However, the spot Ether ETF approvals have been delayed by the United States Securities and Exchange Commission (SEC) until December. This delay has been met with anticipation and speculation within the crypto community, as an approved spot Ether ETF would provide easier access to Ethereum for traditional investors and potentially lead to increased adoption and liquidity within the market.
Overall, VanEck’s decision to donate a portion of its profits to Ethereum core developers showcases the growing recognition of the importance of supporting the community that powers the crypto ecosystem. This move sets an example for other asset managers and ETF issuers to consider giving back to the development and maintenance of the protocols that enable their investments. As the Ethereum network continues to evolve and attract more attention from traditional finance, supporting the core developers becomes increasingly vital to ensure the network’s ongoing success and sustainability.