- VanEck has committed to donating 5% of ETF profits to Bitcoin developers associated with Brink
- Criticisms have arisen over attempts by VanEck and others to institutionalize Bitcoin through ETFs
- The collaboration has sparked mixed reactions in the community
Bitcoin ETF hopeful VanEck has pledged to donate 5% of the profits generated by an ETF to Bitcoin developers associated with the Bitcoin protocol research company Brink. VanEck is one of those currently awaiting approval for its spot bitcoin ETF application from the US Securities and Exchange Commission (SEC) and, like the others, has faced criticism over its attempts to institutionalize Bitcoin. Brink made headlines last year when it announced that it was working with Bitcoin miner Marathon to raise $1 million for Bitcoin developers, but the collaboration with VanEck has not gone down well with everyone.
“No Free Cheese in a Mouse Trap”
VanEck’s Bitcoin ETF application is part of a slew of proposals awaiting the SEC’s decision, with industry experts expecting a positive outcome, potentially as early as tomorrow. The introduction of spot bitcoin ETFs is poised to usher in an unprecedented influx of investment from traditional finance into the cryptocurrency space, hence why it is so heavily anticipated.
While the crypto community generally applauds this shift, mainly because it has pumped their bags, there are also concerns and potential conflicts, most notably from Bitcoin purists who see an ETF as a huge step away from Bitcoin’s initial ideals.
To address this, VanEck has offered an olive branch to the core Bitcoin industry by committing to contributing 5% of its ETF profits to developers and other key contributors through Bitcoin development company Brink:
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
The move echoes a similar initiative by VanEck in October last year when the firm pledged to donate 10% of profits from its ether futures ETF to Ethereum developers. Unsurprisingly, however, not everyone was buying in:
There’s NO free cheese in a mouse trap. Paying off developers to influence the direction of Bitcoin. Nice try Van Eck. I’ve been in this space longer than you guys have ever heard of Bitcoin. You ain’t fooling me.
— Toby Cunningham (@sircryptotips) January 5, 2024
Brink hit the headlines last year when it revealed that it was working with Bitcoin miner Marathon to raise $1 million for Bitcoin developers which it said at the time would allow Bitcoin Core developers to “continue their essential work of maintaining and strengthening the Bitcoin network.”
