VanEck, a global asset management company, announced on September 29th that it will donate 10% of all profits from its upcoming Ether Futures Exchange Traded Fund (ETF) to Ethereum’s core developers for 10 years. Announced on Twitter (formerly Twitter).
The beneficiary will be the above group, The Protocol Guild. 150 developers Maintain Ethereum’s core technology. According to VanEck, it makes sense for asset managers to give some of their profits back to the communities that build crypto protocols. It stated:
“If TradFi can benefit from the efforts of Ethereum’s core contributors, it makes sense that we give back to their work. We encourage other asset managers and ETF issuers to do the same. We encourage you to consider giving back.”
With this move, VanEck joins other crypto-native communities that support the Ethereum network, including Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO.
According to a public dashboard that tracks donations sent to the guild’s mainnet, 4,846 donations were made. generated Donations of over $12 million. Funds are then distributed to members according to a weighted ratio based on the contribution period.
Big announcement!
We plan to donate 10% of our profits $EFUT ETF profits (https://t.co/gr652AkUvv) to @ProtocolGuild For at least 10 years.
Thank you to all the Ethereum contributors for nearly a decade of relentlessly building and continuing to maintain this common infrastructure.
detail
— Vaneck (@vaneck_us) September 29, 2023
Network core developers are reportedly working on Ethereum improvement proposals EIP-4844 (Protodunk Sharding). This upgrade introduces a new class of transaction types to Ethereum and promises to reduce transaction fees for layer 2 protocols.
VanEck unveiled its upcoming Ethereum Strategy ETF (EFUT) on September 28, saying it will invest in Ether futures contracts. The fund will be actively managed by Greg Klenzer, VanEck’s head of active trading, and will be listed on the Chicago Options Exchange in the coming days.
Other traditional investment firms slated to offer exposure to Ether futures include Valkyrie and Bitwise, while a line of Spot Ether ETFs is pending regulatory approval from Invesco Galaxy, ARK 21Shares and VanEck. The number continues to increase. The US Securities and Exchange Commission (SEC) recently postponed its decision on whether to approve Spot Ether products until December.
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