Vaneck Pledges 10% of Ethereum ETF Profits to Fuel ETH Core Development
On September 29, 2023, the asset management firm
Vaneck unveiled an initiative to earmark
10% of its profits from its ethereum (ETH) exchange-traded fund (ETF) towards protocol development for at least ten years. This financial infusion will be given to the Protocol Guild, a
consortium of over 150 core Ethereum developers, fueling their quest to further refine and grow the Ethereum protocol.
The Protocol Guild encompasses
over 150 Ethereum core developers, with an onchain registry bearing testimony to its membership. This guild is steered by the vision to
“boost the incentives around stewarding the core protocol.” Vaneck accentuates that core developers
have played pivotal roles in propelling crucial updates such as The Merge and Shanghai.
The firm underscored
that should traditional finance (tradfi) reap benefits from the endeavors of Ethereum development, it’s only fitting that
Tradefi reciprocates by giving back.
Vaneck’s Ethereum-centric ETF, brandishing the ticker
“EFUT,” operates as a cash-settled futures fund, capitalizing on futures traded over the
Chicago Mercantile Exchange (CME). Yet, it has lodged a filing for a physically-settled ether ETF, in tandem with its spot bitcoin ETF submission. Not to be outdone, Ark Invest and
21shares have also cast their bid into the ring, aiming to launch a physically settled ETH exchange-traded fund with regulatory approval.
