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Ethereum ETF's Community Giveback Initiative

Martin Walker
Oct 1, 2023 at 06:54 am

VanEck, a globally renowned asset management firm, recently made a noteworthy announcement regarding their highly anticipated Ether futures exchange-traded fund (ETF). On the eventful date of September 29, the company took to X (formerly known as Twitter) to share their altruistic commitment: a pledge to allocate an admirable 10% of all profits generated from this ETF to support the diligent Ethereum core developers over a generous period of ten years.

The fortunate recipient of this generous commitment is none other than The Protocol Guild, an esteemed assembly comprising a formidable force of over 150 adept developers dedicated to the meticulous upkeep and advancement of Ethereum's fundamental technological infrastructure. VanEck, with a spirit of fairness and community appreciation, underscored the moral imperative for asset managers to return a fraction of their financial gains to the community that toils tirelessly to shape and refine the intricate crypto protocol. In a thoughtful and resonant statement, they conveyed:

In light of how traditional finance (TradFi) stands to benefit from the tireless endeavors of Ethereum's core contributors, it is only logical and ethical for us to reciprocate and extend our support to their noble cause. We earnestly encourage our counterparts in the realm of asset management and ETF issuance to take a leaf from this book and embrace a similar ethos.

With this momentous step, VanEck forges solidarity with a multitude of crypto-native communities who rally behind and offer steadfast support to the Ethereum network. Noteworthy entities such as Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO have already voiced their unwavering solidarity with this cause.

A publicly accessible and transparent dashboard, thoughtfully curated to track and display the inflow of contributions to the Guild's mainnet, stands as a testament to the overwhelming enthusiasm and support. Astonishingly, a grand total of 4,846 contributions have collectively amassed an awe-inspiring sum of over $12 million in much-needed funds. These invaluable funds are then meticulously disbursed amongst the esteemed Guild members based on a thoughtful and discerning weighted ratio, artfully calculated in alignment with their respective contribution periods.

Now, shifting focus to an equally enthralling development - brace yourselves for the big reveal! Reports have been circulating, buzzing with excitement, about the indefatigable efforts of the Ethereum network's core developers. It has come to light that they are currently engrossed and laboring diligently on Ethereum Improvement Proposal EIP-4844, fondly referred to as Proto-Danksharding. This proposed upgrade promises to introduce a groundbreaking transaction type to the Ethereum network, igniting hope for a future where transaction fees on layer-2 protocols are significantly reduced.

In an unrelated yet equally intriguing disclosure, VanEck made waves by unveiling their forthcoming and eagerly anticipated Ethereum Strategy ETF (EFUT) on the auspicious date of September 28. The essence of this innovative ETF lies in its strategic investment approach, focusing primarily on ether futures contracts. Steering the ship with utmost precision and strategic acumen, Greg Krenzer, the seasoned head of active trading at VanEck, is slated to take the helm as the ETF's active manager. Market enthusiasts and investors are brimming with anticipation as they eagerly await the listing of this promising fund on the prestigious Chicago Board Options Exchange, an event that is expected to unfold in the imminent days.

Furthermore, it is worth noting that alongside VanEck, several other esteemed traditional investment firms, including the likes of Valkyrie and Bitwise, are gearing up to offer enticing opportunities for exposure to Ether futures. On a parallel track, the collective wait for a spot Ether ETF continues to grow in intensity, with industry stalwarts like Invesco Galaxy, ARK 21Shares, and VanEck all standing by, eagerly awaiting the crucial nod of approval from the regulatory authorities. In a recent turn of events, the United States Securities and Exchange Commission (SEC) opted to defer its decision on the approval of a spot Ether product, deferring the pivotal moment to the upcoming month of December.

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