VanEck Pledges 10% of Ether Futures ETF Profits to Ethereum Core Developers for a Decade
Summary:
VanEck, the global asset management firm, will donate 10% of all profits from its upcoming Ether futures ETF to Ethereum core developers for ten years. The funds are intended for The Protocol Guild, a group maintaining Ethereum’s core technology. The company aims to give back to the community developing the crypto protocol. The step places VanEck alongside other communities supporting Ethereum, such as Lido Finance, Uniswap, and others. The developers are presently working on Ethereum Improvement Proposal EIP-4844, expected to reduce transaction fees for layer-2 protocols. Meanwhile, the company's Ethereum Strategy ETF (EFUT) plans to invest in ether futures contracts, and could be listed on the Chicago Board Options Exchange soon.
VanEck, a global asset management firm, has pledged to contribute 10% of its profits from its impending Ether futures exchange-traded fund (ETF) to the Ethereum core developers, over a period of a decade. This announcement was made public on the previous Twitter platform, now known as X, on September 29. The Protocol Guild, comprising of over 150 developers who uphold Ethereum’s central technology, will receive the donations. In VanEck's opinion, asset managers should rightfully share a slice of their profits with the community that constructs the crypto protocol. They strongly urge other asset managers and ETF issuers to reflect on this notion of giving back likewise.
VanEck's initiative indicates their partnership with other crypto-native communities such as Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO, who are also supporting the Ethereum network actively. As per the mainstream dashboard monitoring the donations to the Guild’s mainnet, it reveals a total of 4,846 contributions resulting in donations exceeding $12 million. These funds are then allocated among its members according to a weighted ratio, considering their contribution periods.
The central network developers are focusing on Ethereum Improvement Proposal EIP-4844 (Proto-Danksharding), an upgrade that will incorporate a new type of transaction to Ethereum, lending itself to reduced transaction fees for level-2 protocols. On September 28, VanEck shared the news about its forthcoming Ethereum Strategy ETF (EFUT) that plans to invest in ether futures contracts. Active trading head at VanEck, Greg Krenzer will actively manage this fund. Further, the listing on the Chicago Board Options Exchange is predicted to happen soon. Other conventional investment firms like Valkyrie, and Bitwise are also projected to offer Ether futures exposures, whereas Invesco Galaxy, ARK 21Shares, and VanEck are awaiting regulatory approval for a spot Ether ETF. Recently, the United States Securities and Exchange Commission (SEC) has posponed making a decision on the approval of a spot Ether product until December.
Published At
9/30/2023 4:30:34 PM
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