VanEck has declared its intention to contribute 10% of its profits from the soon-to-launch Ethereum (ETH) futures exchange-traded fund (ETF) to Ethereum’s core development team for the next decade.
This generous gesture will benefit The Protocol Guild, a collective of over 150 developers dedicated to upholding and enhancing Ethereum’s foundational technology. This announcement was made in a recent post on X (previously known as Twitter).
Stressing the significance of reciprocity, VanEck mentioned that it’s only appropriate for financial institutions to show gratitude and support to the community responsible for creating and nurturing the cryptocurrency frameworks they leverage.
“Thank you, Ethereum contributors, for your unwavering dedication and nearly ten years of tireless efforts in establishing and overseeing this shared framework,” shared the company in their statement.
VanEck further conveyed its aspiration that other financial institutions and ETF providers might be inspired to embrace a comparable strategy.
VanEck’s initiative mirrors the broader movement of crypto-centric communities rallying behind the Ethereum network.
Prominent supporters in this endeavor encompass entities like Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO.
A public dashboard, monitoring contributions to the Guild’s primary network, shows that it has amassed over $12 million through 4,846 donations.
The accumulated funds are allocated among the Guild’s members, with distribution influenced by a weighted system reflecting the duration of each member’s contributions.
On September 28, VanEck introduced its forthcoming Ethereum Strategy ETF (EFUT), focusing on investments in ether futures contracts.
The responsibility of actively overseeing this fund falls on Greg Krenzer, VanEck’s head of active trading. The ETF is slated for listing on the Chicago Board Options Exchange shortly.
Investment Firms Rush to Launch Ether Funds
Apart from VanEck, several other conventional investment entities are lining up to offer investment opportunities related to Ether futures.
Valkyrie, another key player, intends to give investors access to Ether futures via its rechristened fund, now known as the Valkyrie Bitcoin and Ether Strategy ETF, which formerly focused only on Bitcoin.
Similarly, Bitwise shared an amended prospectus for their balanced Bitcoin and Ether futures ETF on September 28, gearing up for a launch anticipated in the upcoming week.
Furthermore, Kelly ETFs is joining forces with Hashdex to introduce futures Ether ETFs shortly.
In a recent development, Invesco and Galaxy Digital have made a joint application for a direct Ether ETF, which they’ve named the Invesco Galaxy Ethereum ETF.
The U.S. Securities and Exchange Commission (SEC) recently postponed its decision regarding the authorization of a direct Ether product, setting a new target date in December.
However, buzz in the industry suggests that ETFs rooted in Ether futures might see the light of day as soon as the upcoming week.
There’s growing anticipation, backed by reports, indicating that the SEC is leaning towards greenlighting Ether futures ETFs in the initial days of October. This potential move has stirred excitement among asset managers who are keen on diving into this space.
Commenting on the pace of developments, ETF analyst Eric Balchunas remarked in a post on X, “Reports suggest the SEC is keen to fast-track the roll-out of Ether futures ETFs (possibly due to wanting a resolution before potential shutdown challenges). They’ve requested that submitting parties revise their applications by the end of the week—a considerable ask in such a short timeframe, especially for independent issuers. This hints they aim for a Monday effective date, leading to trading by Tuesday.”
