Asset manager VanEck, a potential provider of a Bitcoin exchange-traded fund (ETF), has unveiled plans to contribute a portion of the profits generated by the investment vehicle to Bitcoin core developers once it receives approval.
In a post on X (formerly Twitter) on January 5, VanEck declared a commitment to donate 5% of profits to Bitcoin core developers through the nonprofit organization Brink in anticipation of potential approval for its spot Bitcoin exchange-traded product application. The asset management firm also revealed a prior $10,000 donation to the developers, irrespective of the SEC’s decision regarding the investment vehicle.
The company expressed gratitude for the developers’ commitment to decentralization and innovation, emphasizing their pivotal role as the foundation of the Bitcoin ecosystem.
VanEck has submitted an application for a spot Bitcoin ETF in the United States, and a decision from the U.S. Securities and Exchange Commission (SEC) is imminent in the coming days. The potential approval of spot Bitcoin ETFs is poised to attract a significant influx of investment from traditional finance (TradFi) into the cryptocurrency space, reaching unprecedented levels.
While the broader crypto community generally embraces this development, there might be some resistance in certain circles. To address potential concerns, providers such as VanEck are taking steps to showcase their dedication to the core Bitcoin industry by contributing to developers and supporting the ecosystem.
As of the announcement, the SEC had not granted approval for a spot Bitcoin exchange-traded fund to be listed on any U.S. exchange. However, the commission is expected to make a decision prior to the January 10 deadline for an application from ARK Invest and 21Shares. On January 4, VanEck formally notified the SEC of its intent to register its Bitcoin ETF shares as securities on the Cboe BZX Exchange.
VanEck Shows Commitment to Bitcoin Ecosystem with $10,000 Donation to Brink
VanEck has taken an active step in supporting the Bitcoin ecosystem by contributing $10,000 to Brink, an organization established in 2020 that focuses on research and development to enhance the Bitcoin protocol.
Highlighting its steadfast commitment to the Bitcoin space, VanEck emphasized, “We’re not Bitcoin tourists at VanEck. We’re in it for the long haul.” The firm recognized Brink’s dedication to decentralization and innovation as crucial elements of the Bitcoin ecosystem and expressed its backing for these principles.
Worth noting is that VanEck is part of a group of firms awaiting a decision from the SEC, including BlackRock, Bitwise, Fidelity, Grayscale, Valkyrie, Invesco, Galaxy, and WisdomTree. The company initiated a media campaign in December, joining Bitwise and Hashdex in similar advertising endeavors.
VanEck’s recent commitment echoes a previous pledge made in September, where the firm promised to donate 10% of all profits from its Ether (ETH) futures ETF to Ethereum core developers over a decade. While the SEC has greenlit crypto investment vehicles linked to BTC and ETH futures, the potential approval of a spot BTC ETF could carry broader implications for adoption.
Despite the existence of multiple spot Bitcoin ETFs trading for years in other parts of the world, such as Canada, some believe that the potential approval of a spot Bitcoin ETF in the U.S. might not significantly impact markets. However, Bloomberg ETF analyst Eric Balchunas argues that the size of U.S. capital markets is so vast that this comparison may be irrelevant. The crypto market has never experienced an injection of capital of this potential magnitude, as predicted by Balchunas and other analysts.
Notably, the regulatory verdict on spot Bitcoin ETFs is imminent. Analysts, including Seyfartt, anticipate approval by January 10, projecting a substantial $10 billion inflow into Bitcoin ETFs within the next 12 months.
