Bitcoin ETF applicant VanEck has committed to donate 5% of its fund’s profits to Bitcoin Core developers, if approved by the U.S. Securities and Exchange Commission (SEC). This pledge could provide significant financial support for these developers, who often lack funding for their work.
VanEck, a prominent ETF and mutual fund manager since 1955 with $76.4 billion in assets under management as of September 2023, has already included a $10,000 donation to developers in its pledge. The firm stated, “We’re not Bitcoin tourists at VanEck. We’re in it for the long haul,” emphasizing its commitment to the Bitcoin ecosystem.
The donations will be facilitated through Brink, a non-profit that connects donors with Bitcoin code testers and maintainers. Brink’s partners include major crypto exchanges such as BitMEX, Kraken, and Coinbase. The largest pledge to date is from #startsmall, a philanthropic initiative by Twitter co-founder Jack Dorsey, which is currently disbursing $5 million to developers over five years.
Unlike other networks, Bitcoin lacks a natural source of funding or protocol maintenance, as it was not funded by an initial coin offering (ICO) or a dedicated foundation. Over the years, several maintainers, those who review proposals to change Bitcoin’s code, have stepped down from their positions and faced legal pressure from individuals like Craig Wright, who claims to be Bitcoin’s pseudonymous creator Satoshi Nakamoto.
Bloomberg ETF analyst James Seyffart predicts that Bitcoin ETFs will collectively attract $10 billion worth of inflows within their first year of approval. If VanEck were to secure 10% of the market share, its fund could take in $1 billion worth of BTC within a year. The fund has not disclosed its sponsor fee, but if it were to charge a 0.8% fee like its competitors Ark/21Shares and Valkyrie, it could generate $8 million in profit annually after the first year. With a 5% donation rate, Bitcoin developers could receive $400,000 worth of donations for ten years. This estimate does not account for potential growth in the value of the fund’s BTC, which some analysts predict could reach $200,000 per coin by 2025.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Jack Dorsey, Craig Wright, Satoshi Nakamoto, James Seyffart |
| Companies | Coinbase, #startsmall, BitMEX, Ark/21Shares, VanEck, U.S. Securities and Exchange Commission, Brink, Kraken, Binance, Valkyrie, Bloomberg |
| Currencies | Bitcoin |
| Securities | None |
