VanEck Announces Big Decision to Support Ethereum (ETH) Development

U.Today

Published Sep 30, 2023 04:24PM ET

VanEck Announces Big Decision to Support Ethereum (ETH) Development

U.Today - Global investment manager has announced its big decision to support Ethereum development. In a tweet, VanEck made the "big announcement" that it plans to donate 10% of its upcoming EFUT ETF profits to Protocol Guild, an entity comprised of ETH core developers, for at least 10 years.

The Protocol Guild is a grassroots funding method for over 150 individuals who are critical to the upkeep of Ethereum's core protocol. It offers peer members reciprocal support as well as a method for the broader ecosystem to support protocol work.

Its members worked alongside the rest of the community to bring the recent Merge and Shanghai improvements to life. This comprised efforts in research, implementation, testing, coordination and other areas.

Many "protocol guild" members are currently focused on EIP-4844 ("proto-danksharding"); according to VanEck, this improvement will reduce the cost of Layer 2s and, perhaps, move Ethereum closer to greater accessibility.

VanEck noted that communities like Lido Finance, Uniswap, Arbitrum and Optimism have given back to these core ETH developers in the past and that it is now its turn to pay back to this community of ETH contributors.

In a Sept. 28 release, VanEck announced the imminent launch of the VanEck Ethereum xStrategy ETF (EFUT). EFUT will invest in standardized, cash-settled ETH futures contracts rather than directly in ETH or other digital assets.

The global investment manager expresses hope for Ethereum's mainstream adoption in the future via the upcoming EFUT fund.

The fund became effective on Sept. 29, 2023, according to VanEck; however, it is not available for trading yet. VanEck promises to offer additional updates regarding its progress.

According to Bloomberg analyst , the upcoming week might be crucial in the Ethereum ETF journey. A potential nine ETFs with ETH futures trading might launch this coming Monday, according to Seyffart.

This article was originally published on U.Today

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