Vaneck, a prominent asset management firm, has disclosed an ambitious move to allocate 10% of the earnings from its Ethereum (ETH) Exchange-Traded Fund (ETF) to aid the ongoing development of the Ethereum protocol. The pledge, announced on September 29, 2023, assures this financial support for a minimum of a decade, channelling the funds to Protocol Guild, a collaborative body of over 150 core Ethereum developers committed to enhancing the protocol.
Unveiling this initiative on the social media platform X, Vaneck expressed its intention to dedicate a portion of the profits from its EFUT ETF to Protocol Guild. The move is seen as a gesture of gratitude and support to the Ethereum contributors who have dedicated nearly ten years to building and maintaining this robust infrastructure.
Protocol Guild, boasting a membership of 150+ core developers documented in an on-chain registry, is committed to augmenting the incentives associated with enhancing the core protocol of Ethereum. Vaneck recognized the instrumental contributions of these developers in executing major updates like The Merge and Shanghai.
Highlighting the symbiotic relationship between traditional finance (Tradfi) and Ethereum development, Vaneck posited that it is only just for Tradfi, which benefits significantly from Ethereum’s evolution, to reciprocate by contributing to its growth. The firm openly encouraged other asset managers and ETF issuers to consider adopting a similar stance of financially backing Ethereum development.
Vaneck’s Ethereum-focused ETF, identified by the “EFUT” ticker, is structured as a cash-settled futures fund, primarily engaging with futures transacted on the Chicago Mercantile Exchange (CME). The firm isn’t stopping there; it has also filed for a physically settled Ether ETF, complementing its submission for a spot Bitcoin ETF. In a parallel development, Ark Invest and 21shares are vying for a regulatory green light to unveil a physically settled ETH exchange-traded fund, echoing the escalating interest in such financial instruments in the crypto domain.