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VanEck commits 10% of Ethereum ETF profits to ETH core developers

Saturday, September 30, 2023 04:14 AM | Invezz via QuoteMedia

VanEck commits 10% of Ethereum ETF profits to ETH core developers

2023-09-30 04:14:14 ET

A Man Holding Ethereum Coin

Investment manager VanEck plans to donate a percentage of profits from its Ethereum Strategy ETF (EFUT) towards the continued development of the Ethereum ecosystem. The commitment is for the next 10 years, the asset management firm announced.

VanEck commits 10% of profit to Protocol Guild

In its announcement late Friday, VanEck says it plans to allocate 10% of the gains it accrues from the trading of the Ethereum Strategy ETF to Protocol Guild, a group of core contributors helping to drive innovation and growth within the Ethereum ecosystem.

The guild provides “ a grassroots funding mechanism ” for approximately 150 developers. Part of this group’s notable contribution is the Merge and the Shanghai upgrade – key developments for Ethereum that highlight the new era of proof-of-stake (PoS).

Projects that have donated to the Protocol Guild include Lido Finance, Uniswap, Arbitrum, Optimism Foundation, ens.eth, and MolochDAO am among others. VanEck’s donation, expected to run for the next 10 years, adds to these efforts.

“We intend to donate 10% of our $EFUT ETF profits to ProtocolGuild for at least 10 years. Thank you, Ethereum contributors, for nearly a decade of relentless building & ongoing stewardship of this common infrastructure,” the company said in a statement posted on X.

It added;

“If TradFi stands to gain from the efforts of Ethereum’s core contributors, it makes sense that we also give back to their work. We urge other asset managers/ETF issuers to consider also giving back in the same way.”

While the fund hasn’t commenced trading, the highly anticipated launch on October 2 has the community buzzing. Bloomberg ETF analyst James Seyffart noted commented on this outlook on X.

As the ETH ecosystem buzzes in anticipation of the launch of various futures ETFs, including this one offered by Bitwise , the market’s wait for a spot ETF continues. This is after the US Securities and Exchange Commission (SEC) delayed decisions on multiple Bitcoin ETF proposals, including that of global investment management giant BlackRock.

The post VanEck commits 10% of Ethereum ETF profits to ETH core developers appeared first on Invezz.

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