VanEck, the fund manager and ETF provider, has announced that it will donate 10% of revenues generated by its Ethereum Futures ETF to the Ethereum ProtocolGuild developer collective for at least 10 years. This news comes as a wave of ETH futures ETFs is expected to hit the market on Monday.
Institutional VanEck wants to fund Ethereum development
Fund manager and ETF provider VanEck announced on X that it plans to donate 10% of revenues from its “VanEck Ethereum Strategy ETF” (ticker EFUT) to the Ethereum ProtocolGuild developer collective for at least 10 years.
Thank you, Ethereum contributors, for nearly a decade of relentless building & ongoing stewardship of this common infrastructure.
– VanEck (@vaneck_us) September 29, 2023
We intend to donate 10% of our ETF profits to the Protocol Guild for at least 10 years. Thank you, Ethereum contributors, for nearly a decade of relentless building and ongoing management of this shared infrastructure. “
According to VanEck’s website and analyst James Seyffart, VanEck’s Ethereum ETF we’re talking about is set to launch next Monday, October 2. In all, a dozen Futures ETFs could be launched on the same day, including those from Bitwise, Porshares, Valkyrie and Hashdex.
Such funding is not insignificant: as Tim Beiko, one of Ethereum’s main developers, points out, it’s rare for institutional investors – especially of this scale – to directly support the network’s growth:
Very cool to see a TradFi company directly fund Ethereum core development out of its profits ⛓️️
Hope they can set an example for the many businesses in the space that are built on top of open protocols ! https://t.co/ao7RCJUOua
– timbeiko.eth ☀️ (@TimBeiko) September 29, 2023
“Very cool to see a TradFi company directly funding the core development of Ethereum with its profits. I hope they can set an example for the many companies in the sector that are built on open protocols!”
According to VanEck, this is a win-win situation, as the development of Ethereum itself supports the manager’s growth through its ETF :
“If TradFi stands to gain from the efforts of Ethereum’s main contributors, it makes sense for us to give back to their work as well. We invite other asset managers/ETF issuers to also consider giving back in the same way. “
A wave of ETF ETH Futures to be expected next week
As the hypothesis of a government shutdown in the US becomes more and more likely – we’ll know the end of the story tonight at midnight – the Securities and Exchange Commission (SEC) has taken the lead and decided to postpone all cash ETFs more than 2 weeks ahead of schedule.
However, on the Ethereum Futures ETF side, it would appear that the SEC is instead keen to give its approval to all applications, as it was able to do yesterday for the Valkyrie one.
OKAY: This looks to be the full list of Ethereum Futures ETFs that will be given SEC accelerated approval to launch on Monday. Assuming they are all operationally ready to go & assuming no last minute entrants. A potential 9 ETFs with ETH futures trading on Monday pic.twitter.com/eQF6MWL4kP
– James Seyffart (@JSeyff) September 29, 2023