VanEck Commits to Donating 10% of Profits from Upcoming Ether Futures ETF to Ethereum Core Developers for a Decade

By Tsunami 10/1/23 3:38 AM

Global asset manager VanEck announced on September 29, via its official X (formerly Twitter) account, that it will allocate 10% of all profits generated by its upcoming Ether futures exchange-traded fund (ETF) to support Ethereum core developers for a period of ten years. The beneficiaries of this generous donation will be members of “The Protocol Guild,” a community of over 150 developers responsible for maintaining the core technology of the Ethereum blockchain.

This decision by VanEck to give back to the Ethereum development community is seen as a significant step forward in recognizing the value and importance of the developers who work tirelessly to maintain and advance the Ethereum protocol. In its statement, VanEck emphasized the need for asset managers to contribute to the crypto ecosystem, acknowledging that they benefit directly from the efforts of Ethereum’s core contributors.

Big announcement!

We intend to donate 10% of our $EFUT ETF profits (https://t.co/gr652AkUvv) to @ProtocolGuild for at least 10 years.

Thank you, Ethereum contributors, for nearly a decade of relentless building & ongoing stewardship of this common infrastructure.

Details 👇

— VanEck (@vaneck_us) September 29, 2023

VanEck’s statement read: “If TradFi [Traditional Finance] stands to gain from the efforts of Ethereum’s core contributors, it makes sense that we also give back to their work. We urge other asset managers/ETF issuers to consider also giving back in the same way.”

The Protocol Guild, the designated beneficiary, serves as a grassroots funding mechanism for the Ethereum development community. Comprising approximately 150 individuals, this group plays a pivotal role in maintaining and enhancing the core Ethereum protocol. They offer mutual support to their fellow members and provide a means for the broader crypto ecosystem to support protocol-related work.

The contributions made by The Protocol Guild have been instrumental in the recent development milestones of the Ethereum network, including the Merge and Shanghai upgrades. Their work spans various areas, such as research, implementation, testing, coordination, and more. Additionally, many members are actively engaged in the development of Ethereum Improvement Proposals (EIPs), including the highly anticipated EIP-4844 (“Proto-Danksharding”), aimed at reducing costs for Layer 2 solutions and expanding Ethereum’s accessibility.

Notably, VanEck’s pledge to donate 10% of its Ethereum Strategy ETF (EFUT) profits to The Protocol Guild is a significant demonstration of support for the Ethereum community. While the fund was only announced on September 28, it has already generated substantial attention. EFUT is designed to invest in ether futures contracts and will be actively managed by Greg Krenzer, the head of active trading at VanEck. The ETF is expected to be listed on the Chicago Board Options Exchange (CBOE) in the coming days.

This move by VanEck underscores the growing synergy between the traditional financial sector and the burgeoning world of cryptocurrencies and blockchain technology. As the Ethereum ecosystem continues to evolve and mature, the contributions of organizations like VanEck to its development are poised to play a crucial role in its long-term success.