VanEck’s BTC ETF Pledge: 5% of Profits Dedicated to Bitcoin Developers

<p>VanEck has announced that if the US Securities and Exchange Commission (SEC) approves its application for a spot Bitcoin ETF, the asset management firm will allocate 5% of the
fund's profits to support Bitcoin developers.</p><p>VanEck is among several other companies awaiting validation of their application to list spot Bitcoin ETF in the US. The imminent approval for listing such a fund is
poised to attract unprecedented investment from traditional finance into the cryptocurrency space.</p><p>Spot Bitcoin ETFs and Crypto Adoption </p><p>Acknowledging the potential surge in investment,
VanEck's pledge to donate a percentage of its profits from the ETF mirrors its prior
commitment to Ethereum developers, Coindesk reported. Its dedication to contributing 10% of profits from
an ether futures <a href="https://www.financemagnates.com/tag/etfs/" target="_blank" rel="follow">ETF</a> to the <a href="https://www.financemagnates.com/terms/e/ethereum/">Ethereum</a> ecosystem last year highlighted the firm's
involvement in supporting the blockchains of major cryptocurrencies.</p><blockquote><p lang="en" dir="ltr">We’re not Bitcoin tourists at VanEck. We’re in it for the long haul. That’s why we made an initial $10k donation and signed a pledge to donate 5% of our Bitcoin ETF profits (if approved) to support Bitcoin Core devs <a href="https://twitter.com/bitcoinbrink?ref_src=twsrc%5Etfw">@bitcoinbrink</a> for at least 10 years. Your tireless dedication to…</p>— VanEck (@vaneck_us) <a href="https://twitter.com/vaneck_us/status/1743300722928619779?ref_src=twsrc%5Etfw">January 5, 2024</a></blockquote><p>Amidst the anticipation of spot Bitcoin ETF
approval, 2023 saw a <a href="https://www.financemagnates.com/cryptocurrency/bitcoin-etf-buzz-fuels-225-billion-crypto-investment-spree-in-2023/" target="_blank" rel="follow">resurgence in crypto investments</a>. There was $2.25 billion
worth of inflows into the sector, the third-largest since 2017, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported. </p><p>This surge contrasted with that of 2022, when inflows were $831 million. The industry witnessed a visible
acceleration in investments during the latter half of 2023, mirroring the
widespread eagerness to launch the inaugural Wall Street spot Bitcoin ETF.</p><p>Notably, <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> emerged as the primary beneficiary,
capturing $1.9 billion in inflows, representing 87% of the total, the most significant
share ever recorded.</p><p>Corporate Giants Enter Bitcoin ETF Arena</p><p>Recently, reports surfaced that Goldman Sachs was
<a href="https://www.financemagnates.com/cryptocurrency/goldman-sachs-considers-bitcoin-etf-collaboration-with-blackrock-grayscale-report/" target="_blank" rel="follow">exploring possible collaboration</a> for spot Bitcoin ETFs. These
reports indicate that Goldman Sachs is contemplating acting as an authorized
participant for the proposed spot Bitcoin ETFs by BlackRock and Grayscale.</p><p>Goldman Sachs' consideration mirrors a broader trend
among major US banks like JPMorgan Chase, Jane Street, and Cantor Fitzgerald,
who are eyeing participation in forthcoming spot Bitcoin ETFs. </p><p>Last year, BlackRock enlisted JP Morgan Securities and Jane
Street as authorized participants. This move underscored the important roles of these entities in streamlining ETF processes for efficient investor
engagement.</p>

This article was written by Jared Kirui at www.financemagnates.com.