On September 29, 2023, Vaneck, the investment management corporation, announced a plan to allocate 10% of its net gains from its Ethereum (ETH) Exchange-Traded Fund (ETF) for the next decade to support the development of the Ethereum protocol. This financial contribution will be directed towards the Protocol Guild, a collective of more than 150 core Ethereum developers, to assist in the ongoing improvement and expansion of the Ethereum network.
A Ten-Year Financial Engagement to Foster Ethereum Growth
In a recent disclosure published on social media platform X last Friday, Vaneck confirmed its long-term commitment to support Ethereum’s progress. “We commit to directing 10% of the profits from our EFUT ETF to the Protocol Guild for a minimum span of ten years,” said the firm. “We extend our gratitude to the Ethereum contributors for almost ten years of continuous innovation and responsible governance of this shared infrastructure.”
The Protocol Guild, comprising over 150 key Ethereum developers, maintains an on-chain registry that validates its membership. Guided by the mission to “enhance the rewards for maintaining the foundational protocol,” Vaneck stresses the integral role these core developers have had in the implementation of significant upgrades such as The Merge and Shanghai.
Vaneck emphasized that if traditional finance sectors (often abbreviated as tradfi) are to benefit from the technological advancements made by Ethereum, it is only just for these sectors to offer something in return. “If the traditional finance sector profits from the hard work of Ethereum’s core development team, it is rational and fair that we contribute back to their efforts,” Vaneck articulated on platform X.
In addition to this:
The investment management firm strongly encourages other asset managers and ETF providers to ponder over similar charitable contributions.
Vaneck’s specialized Ethereum ETF, trading under the ticker “EFUT,” functions as a cash-settled futures fund, leveraging futures contracts traded on the Chicago Mercantile Exchange (CME). Concurrently, the firm has submitted an application for a physically-backed Ether ETF, alongside a spot Bitcoin ETF proposal. Meanwhile, investment firms like Ark Invest and 21shares are also making strides, seeking regulatory approval for their own physically-backed Ethereum ETFs.
What are your views on Vaneck’s commitment to allocate 10% of its EFUT ETF profits to the Protocol Guild? Please share your expert insights on this topic in the comment section below.
Frequently Asked Questions (FAQs) about ETH Development Support
What is Vaneck’s recent initiative regarding Ethereum?
Vaneck has pledged to allocate 10% of its profits from the Ethereum (ETH) Exchange-Traded Fund (ETF) to support Ethereum’s core development.
How long will Vaneck contribute to Ethereum development?
Vaneck’s commitment to Ethereum development is set for a minimum of ten years, as stated in their announcement.
Who will receive the financial support from Vaneck?
The funds will be directed to the Protocol Guild, a consortium of over 150 core Ethereum developers, to aid in enhancing the Ethereum protocol.
What is the mission of the Protocol Guild?
The Protocol Guild aims to increase the incentives for maintaining the core Ethereum protocol and has played a vital role in implementing significant upgrades like The Merge and Shanghai.
Why does Vaneck believe in giving back to Ethereum’s development?
Vaneck believes that if traditional finance (tradfi) benefits from Ethereum’s technological advancements, it’s only fair for them to contribute to the work of Ethereum’s core contributors.
What is Vaneck’s Ethereum ETF called, and how does it operate?
Vaneck’s Ethereum ETF is known as “EFUT,” and it functions as a cash-settled futures fund, capitalizing on futures traded on the Chicago Mercantile Exchange (CME). Additionally, Vaneck has applied for a physically-settled Ether ETF.
Are other firms also showing interest in Ethereum ETFs?
Yes, other investment firms like Ark Invest and 21shares are also seeking regulatory approval for their physically-backed Ethereum ETFs.
More about ETH Development Support
- Vaneck’s Official Announcement
- Protocol Guild’s Website
- Ethereum’s Recent Upgrades (The Merge and Shanghai)
- Vaneck’s EFUT Ethereum ETF
- Ark Invest and 21shares Ethereum ETF Proposals