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On January 5, asset manager VanEck, a potential provider of a Bitcoin exchange-traded fund (ETF), announced via X VanEck Donates a portion of the profits from the proposed investment vehicle to Bitcoin core developers upon regulatory approval.
VanEck has disclosed that VanEck Donates a 5% pledge to support these developers through the nonprofit organization Brink. Notably, the asset management firm has already taken the initiative by making a $10,000 donation to the developers, independent of the Securities and Exchange Commission’s (SEC) decision on the investment vehicle.
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 @bitcoinbrink for at least 10 years. Your tireless dedication to…
— VanEck (@vaneck_us) January 5, 2024
VanEck Donates
Expressing gratitude for the developers’ steadfast commitment to decentralization and innovation, the firm highlighted their pivotal role as the cornerstone of the Bitcoin ecosystem.
VanEck’s application for a spot Bitcoin ETF in the United States awaits a decision from the U.S. Securities and Exchange Commission (SEC), expected in the coming days.
The widely anticipated approval of spot Bitcoin ETFs is seen as a potential catalyst for a substantial influx of investment from traditional finance (TradFi) into the cryptocurrency space, reaching unprecedented levels.
Such a development could signify a transformative moment in the integration of mainstream finance with the rapidly evolving world of cryptocurrencies.
In response to potential concerns, providers like VanEck are proactively demonstrating their commitment to the core Bitcoin industry by giving back to developers and supporting the overall ecosystem. While the broader cryptocurrency community generally embraces this development, there may be friction in certain quarters.
As of the announcement, the U.S. Securities and Exchange Commission (SEC) had not yet approved a spot Bitcoin exchange-traded fund for listing on any U.S. exchange. However, the commission is anticipated to decide on the January 10 deadline for an application from ARK Invest and 21Shares.
Taking an additional step on January 4, VanEck filed a notice with the SEC to register its Bitcoin ETF shares as securities on the Cboe BZX Exchange. This strategic move reflects the ongoing efforts by industry players to navigate the regulatory landscape and facilitate broader access to cryptocurrency investments.
VanEck Donates Support for Bitcoin Ecosystem and Long-Term Vision
Taking an initial stride to bolster the Bitcoin ecosystem, VanEck Donates $10,000 to Brink, a research and development organization committed to enhancing the Bitcoin protocol since its establishment in 2020.
Emphasizing a steadfast commitment to the Bitcoin space, VanEck declared, “We’re not Bitcoin tourists at VanEck. We’re in it for the long haul.” This dedication stems from VanEck’s acknowledgment of Brink’s significant contributions to decentralization and innovation, considering them as foundational elements of the Bitcoin ecosystem.
In a wider context, VanEck is among a group of firms anxiously awaiting a decision from the U.S. Securities and Exchange Commission (SEC). Noteworthy entities in this cohort include BlackRock, Bitwise, Fidelity, Grayscale, Valkyrie, Invesco, Galaxy, and WisdomTree. Engaging in a coordinated media campaign since December, VanEck, alongside Bitwise and Hashdex, actively advocates its position in anticipation of the SEC’s imminent decision.
VanEck’s recent commitment aligns with its earlier promise in September to VanEck Donates 10% of profits from its Ether (ETH) futures ETF to Ethereum core developers over a decade. While the SEC has approved crypto investment vehicles tied to Bitcoin (BTC) and Ethereum (ETH) futures, the potential approval of a spot Bitcoin ETF could have significant implications for adoption.
Some argue that the approval of a spot Bitcoin ETF in the U.S. may not significantly impact markets, pointing to the existence of similar ETFs trading for years in Canada.
VanEck Donates, However, Bloomberg ETF analyst Eric Balchunas suggests the sheer size of U.S. capital markets makes this comparison irrelevant. Analysts predict an unprecedented injection of capital into the crypto market if a spot Bitcoin ETF is approved.
The SEC is expected to disclose its verdict on spot Bitcoin ETFs soon, with predictions of approval by January 10. Analysts, including Seyfartt, anticipate a substantial flow of $10 billion into Bitcoin ETFs within the next 12 months if approval is granted.
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