Protocol Guild to Profit From Ether ETF

Protocol Guild to Profit From Ether ETF

VanEck to Donate Profits from Ethereum ETF to Developers: A Milestone for the Blockchain Community

Image Source: Pixabay / Miloslav Hamrik

The blockchain industry continues to witness groundbreaking developments and initiatives, with VanEck recently announcing that it will donate 10% of all profits from its upcoming Ethereum (ETH) futures exchange-traded fund (ETF) to the Ethereum core developers for a period of ten years[^1^]. This move by VanEck not only showcases their commitment to supporting the growth of the Ethereum network but also sets a remarkable precedent for asset managers within the blockchain industry.

The beneficiary of this extraordinary initiative is The Protocol Guild, a group comprised of over 150 developers tasked with maintaining Ethereum’s core technology[^1^]. VanEck acknowledges the immense contributions made by these developers and expresses its gratitude for their relentless efforts in building and stewarding this common infrastructure[^1^]. By donating a significant portion of their profits, VanEck aims to give back to the community that supports and strengthens the crypto protocol.

This landmark decision by VanEck highlights the growing trend of crypto-native communities actively supporting and nurturing the Ethereum network[^1^]. Various notable contributors, such as Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO, have been actively involved in supporting the development of Ethereum[^1^]. The Ethereum ecosystem has thrived due to the ongoing collaboration and contributions of these dedicated individuals and organizations.

To date, The Protocol Guild’s mainnet has received over $12 million from 4,846 contributions[^1^]. These funds are distributed among the members of the Guild based on a weighted ratio determined by their contribution periods[^1^]. This transparent and fair distribution mechanism ensures that the Ethereum development community continues to receive the necessary support and resources for its endeavors.

VanEck’s dedication to the Ethereum network is further showcased by the introduction of their upcoming Ethereum Strategy ETF (EFUT)[^1^]. The fund, actively managed by Greg Krenzer, the head of active trading at VanEck, will invest in ether futures contracts[^1^]. With plans to list the ETF on the Chicago Board Options Exchange, VanEck aims to provide investors with an opportunity to explore and benefit from the potential of Ethereum.

VanEck is not alone in recognizing the immense potential of Ethereum. Several other traditional investment firms are also vying to offer exposure to Ethereum futures in their investment products[^1^]. Valkyrie, for instance, plans to provide exposure to Ether futures through its existing Bitcoin Strategy ETF, now renamed as the Valkyrie Bitcoin and Ether Strategy ETF[^1^]. Bitwise has submitted an updated prospectus for their equal-weight Bitcoin and Ether futures ETF and expects to go live soon[^1^]. Kelly ETFs and Hashdex have also partnered to deliver futures Ether ETFs in the near future[^1^].

Furthermore, investment giants such as Invesco and Galaxy Digital have filed for a spot Ether ETF, known as Invesco Galaxy Ethereum ETF[^1^]. Although the United States Securities and Exchange Commission (SEC) recently delayed its decision on approving a spot Ether product until December[^1^], there are speculations that futures-based Ether ETFs might become available as early as next week[^1^]. Reports suggest that the SEC may expedite the launch of Ether futures ETFs in early October, igniting significant interest and anticipation among asset managers eager to participate[^1^].

In conclusion, VanEck’s decision to donate a portion of profits from their Ethereum ETF to the Ethereum core developers is a remarkable milestone for the blockchain community. This move not only acknowledges the invaluable contributions made by the development community but also sets an example for other asset managers and ETF issuers to follow. The blockchain industry continues to witness the rise of investment products focused on Ethereum, with various investment firms rushing to offer exposure to Ether futures. As the industry evolves, it is crucial to celebrate and support the core developers and communities that drive the advancement of blockchain technology.