Global asset manager VanEck has pledged to donate 10% of all profits from its upcoming Ether futures exchange-traded fund (ETF) to Ethereum core developers for a period of ten years. In a recent announcement on X (formerly Twitter) on Sept. 29, VanEck stated that it believes it is only fair for asset managers to return a portion of their proceeds to the community responsible for building the crypto protocol. This commitment is a significant step towards acknowledging the valuable contributions of Ethereum developers and fostering continued innovation within the network.
The beneficiary of VanEck’s donations will be The Protocol Guild, a collective of over 150 developers devoted to maintaining Ethereum’s core technology. This initiative follows the lead of various other crypto-native communities, such as Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO, who have shown their support for the Ethereum network. By contributing to the Guild’s mainnet, these communities have already generated over $12 million in donations. These funds are then distributed among the Guild’s members based on their respective contributions.
VanEck’s decision to give back to Ethereum’s core contributors reflects a growing understanding among asset managers and ETF issuers in the traditional finance industry. As more financial institutions recognize the potential of cryptocurrencies and blockchain technology, it is crucial for them to acknowledge the foundational work done by the developers and communities behind these protocols. VanEck emphasizes the importance of other asset managers and ETF issuers following suit, urging them to consider adopting a similar approach to support their respective crypto communities.
Alongside its commitment to donating a portion of profits, VanEck also disclosed its plans for the Ethereum Strategy ETF (EFUT) on Sept. 28. This ETF will predominantly invest in ether futures contracts and will be actively managed by Greg Krenzer, who serves as the head of active trading at VanEck. The fund is anticipated to be listed on the Chicago Board Options Exchange in the near future, providing traditional investment firms and retail investors greater exposure to the potential of Ethereum.
VanEck is not alone in recognizing the significance of offering exposure to Ether futures. Other renowned investment firms, including Valkyrie and Bitwise, have also expressed their intent to provide investors with opportunities to participate in the Ethereum ecosystem. Furthermore, there is a growing lineup of companies waiting for regulatory approval to introduce spot Ether ETFs, including Invesco Galaxy, ARK 21Shares, and VanEck. These developments reflect the increasing demand for diversified investment products and the recognition of cryptocurrencies as a legitimate asset class.
While the crypto market continues to innovate and expand, regulatory bodies such as the United States Securities and Exchange Commission (SEC) still play a critical role in determining the availability of certain investment products. The SEC recently postponed its decision on approving a spot Ether product until December, further highlighting the importance of regulatory clarity to enable the growth and maturity of the cryptocurrency market.
VanEck’s commitment to donating a portion of its profits to Ethereum core developers demonstrates the recognition of the contributions made by the Ethereum community. As the crypto market evolves, it is crucial for asset managers and ETF issuers to foster collaboration and support the developers and communities responsible for the growth and innovation in this space. By doing so, they contribute to the advancement of the entire ecosystem, ensuring its long-term success.