New York-based asset manager VanEck has made a move that has received wide support from the leading altcoin Ethereum community. The company announced its intention to donate 10% of its Ethereum Strategy exchange-traded fund (ETF) to The Protocol Guild, a collective of 152 Ethereum core protocol participants, for at least 10 years. Here are the details…
VanEck donates to leading altcoin ETH
The announcement, made via the asset manager’s official X (formerly Twitter) account, marks an important step towards bridging the gap between traditional finance (TradFi) and the Ethereum ecosystem. VanEck also emphasized their commitment to the ongoing management of Ethereum’s public infrastructure. He took the opportunity to express his gratitude to Ethereum contributors for their nearly ten years of dedicated work. VanEck expressed the logic behind this philanthropic effort as follows:
If TradFi (traditional finance) is to profit from the efforts of Ethereum’s core contributors, it makes sense for us to give back to their work. We urge other asset managers/ETF issuers to consider reimbursing in the same manner.
This move was met with surprise and enthusiasm within the Ethereum community. Because many see this as an important validation of Ethereum’s value proposition and the importance of supporting its fundamental development. Delegate founder 0xfoobar expressed surprise. “This is crazy, I never expected to see this in a million years,” the founder said. Ethereum alignment is an incredibly value-creating narrative. But it’s very rare to see such large institutions understand this,” he said.
VanEck to launch Ethereum Strategy ETF
Tim Beiko, who leads the Ethereum core protocol meetings, appreciated VanEck’s initiative. “It’s great to see a TradFi company funding Ethereum core development directly from its profits. I hope they can set an example for many businesses in the space built on open protocol!” said. VanEck’s move is in line with its preparations to launch the Ethereum Strategy ETF (EFUT), which is designed to focus on ETH futures contracts. The ETF will be listed on the CBOE. It will also be actively managed by VanEck’s head of active trading, Greg Krenzer. It is worth noting that while the fund is in the preparation phase, there is no assurance of starting trading, as stated by the asset manager.
This effort by VanEck shows that Ethereum’s importance in the financial world is increasingly recognized. It’s also a testament to the willingness of traditional financial institutions to contribute to Ethereum’s continued success. This gesture not only strengthens the Ethereum ecosystem. It also sets a precedent for other organizations in the industry to consider similar initiatives to support open source Blockchain projects.
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