VanEck has announced that if its proposal for a spot Bitcoin ETF is approved, the asset management firm will allocate 5% of the fund’s profits to support Bitcoin developers.

VanEck’s application for a spot Bitcoin ETF in the United States is among several others awaiting validation from the US Securities and Exchange Commission (SEC). The imminent approval of such a fund’s listing is poised to attract unprecedented investment from traditional finance into cryptocurrencies.

Spot Bitcoin ETFs and Crypto Adoption

Acknowledging the potential surge in investment, VanEck’s pledge to donate a percentage of ETF profits mirrors its prior commitment to Ethereum developers, Coindesk reported. Its dedication to contributing 10% of profits from an ether futures ETF to the Ethereum ecosystem last year highlighted the firm’s involvement in supporting the fundamental layers of major cryptocurrencies.

We’re not Bitcoin tourists at VanEck. We’re in it for the long haul. That’s why we made an initial $10k donation and signed a pledge to donate 5% of our Bitcoin ETF profits (if approved) to support Bitcoin Core devs @bitcoinbrink for at least 10 years. Your tireless dedication to…

— VanEck (@vaneck_us) January 5, 2024

Amidst the anticipation of spot Bitcoin ETF approval, 2023 saw a resurgence in crypto investments. There was $2.25 billion worth of inflows into the sector, the third-largest since 2017, Finance Magnates reported.

This surge marked a stark reversal from the previous year, 2022 when inflows were $831 million. The industry witnessed a visible acceleration in investments during the latter half of 2023, mirroring the widespread eagerness to launch the inaugural Wall Street BTC spot ETF.

Notably, Bitcoin emerged as the primary beneficiary, capturing $1.9 billion in inflows, representing 87% of the total, the most significant share on record.

Expect ongoing updates as this story evolves.

This article was written by Jared Kirui at www.financemagnates.com.CryptoCurrencyRead More

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