VanEck Commits 5% Of Bitcoin ETF Profits To Core Developers

A Commitment To Bitcoin Developers

VanEck, a leading asset management firm, is among those seeking the US Securities and Exchange Commission’s approval to launch a Spot Bitcoin exchange-traded fund (ETF). However, a unique move on their part is the announcement that should their proposal be granted; they would donate 5% of the profits from this investment vehicle to support Bitcoin core developers.

Following a recent posting on X, VanEck stated that this contribution would be made through its non-profit organization (Brink). As an indication of their commitment, VanEck has donated $10,000 to these developers even though the SEC has yet to make its decision regarding these ETF proposals.

VanEck’s proactive backing of the developers shows his dedication to fortifying Bitcoin’s foundation, which improves the system’s resilience and growth potential. By allocating a portion of their exchange-traded fund (ETF) profits to these developers, VanEck aims to ensure continual improvement of the Bitcoin network.

Aiming For Approval

Besides VanEck, other asset management companies, like BlackRock, Bitwise, Fidelity, Grayscale, Valkyrie, Invesco, Galaxy, and WisdomTree, are also awaiting the ruling from the SEC. Furthermore, Bitwise and Hashdex are participating in media campaigns, contributing to the growing hype surrounding these approvals.

Cypher Mind HQ

A recent media effort by VanEck in December coincided with similar advertising initiatives that Bitwise and Hashdex had undertaken. The SEC has already sanctioned crypto investment vehicles related to Bitcoin and Ethereum futures. However, the prospective approval of a spot Bitcoin exchange-traded fund (ETF) holds significant ramifications for broader institutional investment.

Would A Spot Bitcoin ETF Become A Reality?

Meanwhile, a top Bloomberg ETF analyst, Eric Balchunas, has boldly affirmed that the US financial regulator would approve these ETFs. Balchunas opined that applications for Bitcoin spot ETFs have advanced to the final stages of approval.

Citing information from reliable sources within the industry, the expert asserted that all the basics for this approval are now complete. Balchunas referenced a document stating that the final form S-1 registration statements are expected to be made available by eight o’clock on Monday morning, US time.

This timeframe indicates the possibility of a spot BTC ETF launch on January 11. However, Balchunas emphasized the importance of receiving explicit confirmation from the SEC.

Awaiting The SEC’s Green Light

A recent report revealed that the commission staff are optimistic about the last reviews of the ETF proposals. Observers believe Balchunas’s optimistic view may be traced back to this information.

Meanwhile, the proposed rule changes on stock exchanges that would enable trading these expected exchange-traded funds are in what are known as 19b-4 filings. Within the cryptocurrency community, there are diverse opinions despite the broad optimism surrounding the possibility of a Bitcoin spot exchange-traded fund (ETF) being approved.

Nevertheless, several notable figures within the industry have stated that it is unlikely that the commission would approve these proposals this month. Their skepticism has dampened the recent euphoria surrounding this potential approval within several crypto communities. Time will tell whether these notable figures or Bloomberg’s analysts are correct about what the SEC would decide.

Author: Owen Clark

Owen Clark, a seasoned crypto newsman and broker, deciphers the intricacies of the digital currency realm, empowering investors with his astute analysis and actionable insights.

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