VanEck, a prominent asset management firm, has made a significant commitment to support Bitcoin developers if their application for a spot Bitcoin exchange-traded fund (ETF) receives approval from the US Securities and Exchange Commission (SEC).
Specifically, they plan to allocate 5% of the fund’s profits towards this cause.
This announcement comes as part of a growing trend in the financial industry where various companies are eagerly awaiting SEC approval to list spot Bitcoin ETFs, paving the way for traditional finance to enter the cryptocurrency space in an unprecedented manner.
VanEck’s commitment to supporting Bitcoin developers mirrors their previous dedication to Ethereum’s development community.
Last year, they pledged to contribute 10% of profits from an ether futures ETF to the Ethereum ecosystem, emphasizing their active involvement in supporting major cryptocurrency blockchains.
The anticipation of spot Bitcoin ETF approval has already had a notable impact on crypto investments in 2023. Finance Magnates reported that the sector saw a substantial influx of funds, amounting to $2.25 billion, marking the third-largest inflow since 2017.
This surge contrasts sharply with the previous year, 2022, when inflows totaled just $831 million.
The latter half of 2023 witnessed increasing investments in the digital asset industry, driven by the expectation of the first-ever spot Bitcoin ETF approval in the US.
Bitcoin emerged as the primary beneficiary of this renewed interest, attracting $1.9 billion in inflows, representing an astonishing 87% of the total funds invested.
This remarkable share demonstrates Bitcoin’s dominance and appeal among investors as the anticipation of the spot ETF approval grows.
Recent reports have indicated that Goldman Sachs is exploring potential collaborations with BlackRock and Grayscale for spot Bitcoin ETFs.
This suggests that Goldman Sachs may act as an authorized participant for these proposed ETFs, further underscoring the growing interest of major US banks, such as JPMorgan Chase, Jane Street, and Cantor Fitzgerald, in participating in upcoming spot Bitcoin ETFs.
BlackRock had already enlisted JP Morgan Securities and Jane Street as authorized participants in the previous year, highlighting the crucial roles these entities play in streamlining ETF processes for efficient investor engagement.
The race for spot Bitcoin ETFs in the US continues to gain momentum, with VanEck’s commitment to support developers adding to the growing excitement in the cryptocurrency and traditional finance worlds alike.