VanEck to donate 10% of profits from Ether ETF to core developers
Global asset manager VanEck will donate 10% of the profits from its upcoming Ethereum Futures Exchange Fund (ETF) to Ethereum Core developers for ten years, the company announced on September 29 via X (formerly Twitter).
The beneficiary will be The Protocol Guild, a group of over 150 developers who maintain Ethereum's core technology. According to VanEyck, asset managers should return part of their funds to the community to build the crypto protocol. He explained.
“If TradFi can benefit from the efforts of Ethereum's core contributors, it's worthwhile for us to give back to their work. We urge other asset managers/ETF issuers to consider giving back in the same way.”
With this move, VanEek joins other crypto-native communities supporting the Ethereum network, including Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO and Nouns DAO.
According to a public dashboard of donations sent to the Guild's mainnet, 4,846 contributors have received more than $12 million in donations. Funds are distributed to the members on a weighted ratio based on their contribution period.
Big announcement!
We intend to donate 10% of our $EFUT ETF profits (to ProtocolGuild for at least 10 years).
Thank you, Ethereum contributors, for ten years of constant building and continuous stewardship of this shared infrastructure.
Details
— VanEck (@vaneck_us) September 29, 2023
Network Core developers are said to be working on the Ethereum upgrade proposal EIP-4844 (Proto-Danksharding). The update introduces a new type of transaction to Ethereum, promising to lower transaction fees for Layer-2 protocols.
On September 28, Van Eyck announced that he will invest in the Ethereum Strategy ETF (EFUT) for Ether futures contracts. The fund is actively managed by VanEck's head of market trading, Greg Krenzer, and is expected to be listed on the Chicago Board Options Exchange in the coming days.
Other traditional investment firms positioned to provide exposure to Ether futures include Valkyrie and Bitwise, the spot line Ether ETF is growing with Invesco Galaxy, ARK 21Shares and VanEck pending regulatory approval. The United States Securities and Exchange Commission (SEC) recently delayed approval of the SpaceEther product until December.
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