VanEck Commits to Donating 5% of BTC ETF Profits to Bitcoin Developers at Brink

Asset manager VanEck, a potential provider of a Bitcoin exchange-traded fund (ETF), has revealed plans to donate a portion of the profits from the investment vehicle to Bitcoin core developers upon approval.

In a post on X (formerly Twitter) on January 5, VanEck announced a 5% pledge to Bitcoin core developers through the nonprofit organization Brink ahead of potential approval for its spot Bitcoin exchange-traded product application. The asset management firm also disclosed that it had already made a $10,000 donation to the developers, irrespective of the SEC’s 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

The firm expressed appreciation for the developers’ dedication to decentralization and innovation, describing them as the cornerstone of the Bitcoin ecosystem.

VanEck applied for a spot Bitcoin ETF in the United States, with a decision from the U.S. Securities and Exchange Commission (SEC) expected in the coming days. The potential approval of spot Bitcoin ETFs is anticipated to bring a substantial influx of investment from traditional finance (TradFi) into the cryptocurrency space, reaching unprecedented levels.

While the existing crypto community generally welcomes this development, there may be some friction in certain quarters. To address this, providers like VanEck aim to demonstrate their commitment to the core Bitcoin industry by giving back to developers and supporting the ecosystem.

As of the time of the announcement, the SEC had not approved a spot Bitcoin exchange-traded fund for listing on any U.S. exchange. However, the commission is expected to make a decision ahead of the January 10 deadline for an application from ARK Invest and 21Shares. On January 4, VanEck filed a notice with the SEC to register its Bitcoin ETF shares as securities on the Cboe BZX Exchange.

VanEck Shows Commitment to Bitcoin Ecosystem with $10,000 Donation to Brink

VanEck has initiated these efforts by donating $10,000 to Brink to support its ongoing work. Brink, established in 2020, focuses on research and development to enhance the Bitcoin protocol.

The firm emphasized its long-term commitment to the Bitcoin space, stating, “We’re not Bitcoin tourists at VanEck. We’re in it for the long haul.” The firm acknowledged Brink’s dedication to decentralization and innovation as fundamental to the Bitcoin ecosystem and expressed its support for these principles.

Notably, VanEck is among several firms awaiting an SEC decision, including BlackRock, Bitwise, Fidelity, Grayscale, Valkyrie, Invesco, Galaxy, and WisdomTree. The firm initiated a media campaign in December, joining Bitwise and Hashdex in similar advertising efforts.

This move by VanEck echoes a previous commitment made in September, where the firm pledged to donate 10% of all profits from its Ether (ETH) futures ETF to Ethereum core developers for a decade. While the SEC has approved crypto investment vehicles tied to BTC and ETH futures, the potential approval of a spot BTC ETF could have broader implications for adoption.

Meanwhile, some believe that the potential approval of a spot Bitcoin ETF in the U.S. could have little to no impact on markets, as multiple spot Bitcoin ETFs have been trading for years in other parts of the world, such as Canada.

However, the size of U.S. capital markets is so large that this comparison may be irrelevant, according to Bloomberg ETF analyst Eric Balchunas. The crypto market has never seen an injection of capital of this potential magnitude, as Balchunas and other analysts predict.

Notably, the regulator must disclose its verdict on spot Bitcoin ETFs soon. Seyfartt predicted approval by January 10, with $10 billion flowing into Bitcoin ETFs within 12 months.

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