VanEck will donate 5% of profits to Brink developer if Bitcoin spot ETF is approved

10 months ago 69

Donate to Bitcoin development

On the 5th, VanEck, a major U.S. asset management company, announced that if the crypto asset (virtual currency) Bitcoin (BTC) spot ETF (exchange traded fund) that the company has applied for is approved, it will “Brink” 5% of the profits of that ETF. announced that it has signed a contract to donate money to Bitcoin developers.

The period for donating profits is at least 10 years. In addition, the company said it has already made an initial donation of approximately 1.44 million yen ($10,000).

connection: VanEck predicts the amount of capital inflow upon approval of Bitcoin spot ETF, taking into account gold ETF cases and economic environment

What is an ETF?

Abbreviation for “Exchange Traded Fund.” Refers to investment trusts listed on financial instruments exchanges, where a wide range of financial products, not just virtual currencies, are traded.

Bitcoin physical ETFs attract a lot of attention from investors because they actually own and manage Bitcoins.

Virtual currency glossary

Brink is an organization founded in 2020. It contributes to the Bitcoin protocol and network through research and development, and supports the developer community with funding, education, and advice.

Brink is funded entirely by donations from individuals and organizations who want to support Bitcoin. In June 2023, the company announced that it received a donation of approximately 720 million yen ($5 million) at current exchange rates from Jack Dorsey’s fund “Start Small”, the founder of Twitter (currently known as X).announcementdid.

VanEck commented as follows:

Brink’s continued dedication to decentralization and innovation is a cornerstone of the Bitcoin ecosystem.

We plan to support this effort and will provide further details in due course.

connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks

Bitcoin ETF special feature

Spot ETF approval coming soon?

VanEck previously had its Bitcoin spot ETF rejected by the U.S. Securities and Exchange Commission (SEC), but reapplied last year. Currently, they are awaiting the results of the review along with BlackRock, Ark, Grayscale, and others.

The SEC has so far disapproved all Bitcoin spot ETFs from the perspective of investor protection, but current applicant companies have introduced mechanisms to alleviate the SEC’s concerns and have held repeated meetings with the SEC. Expectations are high that it will be approved this time.

Many also believe that, to be fair, the SEC will approve multiple ETFs at the same time. For this reason, the deadline for final judgment on whether to approve or disapprove the Ark ETF is due on the 10th of this month, and the attention of investors is currently increasing, and the market is sensitive to news reports and other materials.

On the 3rd, Matrixport, a virtual currency service company, stated that “the SEC will disapprove all Bitcoin spot ETFs this month,” and the price of Bitcoin plummeted.

connection: U.S. SEC disapproves Bitcoin spot ETF again? Matrixport releases new analysis