Big Plans for Ethereum
VanEck, a global asset management firm, made a splash on September 29 by announcing that it will donate a whopping 10% of profits from its upcoming Ether futures Exchange-Traded Fund (ETF) to Ethereum core developers for the next decade. This initiative, which may just be the corporate world’s version of a charity bake sale, aims to give back to the community that tirelessly maintains the Ethereum network.
Who’s Getting the Cash?
The designated recipient of these funds is the Protocol Guild, a collective of over 150 developers dedicated to keeping Ethereum’s core technology running smoothly. With VanEck’s commitment, the hope is to inspire similar generosity from other asset managers and ETF issuers. After all, says VanEck, if the good ol’ traditional finance sector is reaping rewards from Ethereum’s innovations, then why not share the bounty?
What’s This ETF About?
Set to debut in the coming days on the Chicago Board Options Exchange, VanEck’s Ethereum Strategy ETF will focus on investing in Ether futures contracts. The ETF will be actively managed by Greg Krenzer, who is clearly a fan of late nights and spreadsheets. While investors are excited, there’s also a lot of buzz about when the spot Ether ETFs will finally receive regulatory approval, with several firms, including Valkyrie and ARK 21Shares, eagerly waiting in line.
The Bigger Picture
This philanthropic gesture by VanEck aligns it with other crypto-centric entities and communities that have championed Ethereum’s infrastructure. Lido Finance, Uniswap, and others have been known for supporting the network. In the last few years alone, core developers have received nearly 4,846 contributions, raking in over $12 million in donations, as per a dashboard that tracks these numbers.
But Wait, There’s More!
In a time when transaction fees might feel like a credit card bill that just won’t quit, Ethereum’s core developers are also hard at work on the Ethereum Improvement Proposal EIP-4844, which promises to introduce a new type of transaction that could drastically reduce fees for layer-2 protocols. Talk about multitasking!
In Conclusion
VanEck’s recent announcement isn’t just a monetary move; it’s a statement about the intertwining destinies of traditional finance and blockchain technology. Let’s hope other firms catch on and join this wave of giving back to the community that’s made their profits possible.
