VanEck, a leading asset management group, has announced that it will invest in the Bitcoin ecosystem for the long term and support the open-source Bitcoin Core development. The firm said that if its spot Bitcoin exchange-traded fund (ETF) is approved by the U.S. Securities and Exchange Commission (SEC), it will donate 5% of its profits to Brink, a nonprofit organization that funds and mentors Bitcoin Core developers, for at least 10 years.
In a Twitter (X) post on January 5, the company wrote:
“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 decentralization and innovation is the cornerstone of the Bitcoin ecosystem, and we’re here to support it—more details to come.”
Belief in the Importance of Bitcoin Core Development
VanEck’s spot Bitcoin ETF, which would track the price of Bitcoin directly rather than through futures contracts, is one of the most anticipated products in the crypto space. The firm submitted an updated prospectus for its VanEck Bitcoin Trust to the SEC in October 2021, and is awaiting a final decision from the regulator, which has repeatedly delayed and rejected similar applications in the past.
VanEck said that its commitment to Brink reflects its belief in the importance of Bitcoin Core development, which ensures the security, stability, and innovation of the Bitcoin network and protocol. Brink, founded in 2020, has emerged as the top funder of Bitcoin Core developers and reviewers, according to a presentation by crypto research firm BitMex Research.
Giving a Shot to Institutions
VanEck also said that it supports the launch of the US-listed spot Bitcoin ETFs, which it believes will bring more legitimacy and transparency to the crypto market, as well as attract more institutional and retail investors.
“I also wanted to thank to OGs, Bitcoiners, core devs, exchanges, stablecoins, etc… for keeping an open mind and giving a shot to institutions. While the two groups may not always share interests, I believe that institutions and ETFs could help bring about more adoption.,” said Gabor Gurbacs, director of digital asset strategy at VanEck