VanEck Commits 5 percent of Profits from Bitcoin ETF to the Core Developers of Bitcoin if the ETF application is approved by the SEC.
Asset Management firm and one of the notable names who have filed for the spot Bitcoin ETF application, VanEck, has come up with a surprising pledge that will undoubtedly improve the move of the Bitcoin core developers.
According to the firm, they have planned to pledge 5% of the profits from the spot Bitcoin ETFs, once it is approved by the SEC, to the Bitcoin core developers through Brink.
Brink is a global cash-handling service that manages cash movement through armored trucks, ATM refills, and vault storage. They also offer cash processing services like counting, sorting, and counterfeit detection. Along with these services, Brink is known for providing technical solutions for digitizing cash management for big-volume businesses.
VanEck is one of the eleven firms that has filed for the spot Bitcoin ETF application, along with other known names like BlackRock, Fidelity, Grayscale, and Invesco.
These firms have submitted their application to the United States Securities and Exchange Commission (SEC). They are currently waiting on the regulatory authorities’ completion of the vetting process, along with the deliberation of whether or not to approve these applications.
If the members of the Bitcoin core developer team are worried that they will not receive any donation from VanEck if the SEC, for reasons known to them, decides not to approve their application, then they still have a silver lining. VanEck said that the company has already made a $10,000 donation to the developers regardless of whether or not the SEC gives them the green light regarding their ETF approval.
The firm made this announcement on January 5 on their X(formerly Twitter) profile, which means that they know that everyone who follows the crypto space knows about their pledge. They wouldn’t take back out from this pledge lightly if and when their application gets approved.
Given that the projected profits from the spot Bitcoin ETFs are expected to be huge, the developer team would have their fingers crossed as well, along with ETF applicants, that the SEC finally gives them the go-ahead to list their ETFs on exchanges.
The SEC has yet to announce whether or not they have decided to approve these ETFs to be listed on any U.S. exchange.
Many expect the SEC to do the right thing and approve the spot Bitcoin ETFs to be listed.
Some say that the SEC has no choice but to give these applications a green light, especially after the lessons learned from the previous lawsuit where a federal court ruled in favor of Grayscale in their legal argument against the SEC’s rejection of their application.
The consensus among most of the crypto community is that the closest date on which the SEC is expected to announce their decision after the January 10 deadline for an application from Ark Invest and 21Shares.
VanEck has already filed a notice with the SEC in which it asked the regulatory body to register VanEck’s Bitcoin ETF shares as securities on the Cboe (Chicago Board Options Exchange) BZX exchange.
In September 2023, VanEck committed to donating 10% of its earnings from the Ether futures ETF to support Ethereum core developers for a decade.
The SEC has previously approved cryptocurrency investment products linked to Bitcoin (BTC) and Ethereum (ETH) futures but has so far shown reluctance to approve the current spot Bitcoin ETF applications.
However, the potential approval of a Bitcoin spot ETF could significantly impact widespread acceptance and adoption as many analysts believe it will skyrocket the price of assets in the crypto market to new highs.
