VanEck’s positive forecasts are pushing it to promise a donation of 5% of its potential profits related to the Bitcoin spot ETF to the non-profit association Brink, if ever approved.
This move by the Fund Manager outlines his optimism about the cryptocurrency industry, especially for Bitcoin, which could obtain approval for its first publicly traded fund as early as this week.
Vaneck a few weeks ago had already expressed its predictions regarding the future prices of the currency in 2024, which could leave everyone speechless following what is expected to be an extraordinary bull run.
Let’s see all the details below.
Summary
VanEck and profit forecasts on the Bitcoin spot ETF for the non-profit Brink developers
VanEck, one of the largest asset managers in the world with $76.4 billion AUM, made an important promise to Bitcoin developers core of the non-profit Brink.
The global investment company based in New York has clearly stated that it will donate 5% of its potential legal profits to the BTC spot ETF, if of course it is approved by the SEC, to the developers’ association.
This decision was publicly announced on X, where the company emphasized its long-term commitment to the Bitcoin community, stating verbatim:
“We are not Bitcoin tourists at VanEck. We are here for the long term. The company has recognized Brink’s commitment to decentralization and innovation as fundamental to the Bitcoin ecosystem and has expressed its support for these principles.”
By donating a portion of its profits related to the fees that will be applied to the trading of its ETF to Brink, VanEck directly supports research and development activities on the cryptographic protocol, investing in the growth of the technology.
As part of its philanthropic activity, the Fund Manager has also donated $10,000 to the same association, which has been producing innovation on the Bitcoin network since 2020 and is 100% supported by external donations.
Regarding the news, Jonathan Bier, who is part of Brink’s board of directors, commented on Vaneck’s stance with these words:
“I think it’s fantastic news. The open-source development work on Bitcoin is really important, and it’s great that VanEck is generously giving back to the backbone of the ecosystem.”
VanEck had previously made a similar promise regarding Ethereum: in September of last year, it had pledged to donate 10% of all profits from its Ether (ETH) futures ETF to Ethereum core developers for a decade.
Now everything will depend on the SEC, as only its approval can give the green light for the release of the first spot Bitcoin ETF on the American stock exchange.
Already by January 10th, the first white smoke from the US federal agency could arrive, as that day is the final deadline for the 21-shares ETF by Ark.
The final date for approval of the Vaneck ETF is instead January 15th: in general, responses are expected in January for a wide range of Fund Managers including BlackRock, Bitwise, Fidelity, Grayscale, Valkyrie, Invesco, Galaxy, and WisdomTree.
VanEck and the bullish forecasts on BTC for the coming months
While the SEC finalizes its analysis to decide whether to approve or not a spot Bitcoin ETF, Vaneck on January 4th submitted a notice to the same US agency, registering its Bitcoin shares as securities on the Cboe BZX Exchange.
In the days leading up to it, anonymous sources have reported to Fox Business that the securities regulatory authority has met with stock exchanges such as Nasdaq, CBOE, and the New York Stock Exchange to discuss some details related to the approval of a potential BTC spot ETF.
These are obviously excellent signals, but everything is still uncertain, pending the SEC’s authorization for the first Exchange Traded Fund issuer.
The investment company VanEck is confident that the first regulated Bitcoin instrument will soon land on American exchanges, and recently published its predictions on the crypto asset.
At first, he stated that Bitcoin in the coming months will assume a completely different role compared to the one it has played so far in investors’ portfolios, becoming a dominant asset class.
This, in fact, will no longer be seen as a technological bet of a niche sector, but as a form of risk-on investment regulated and authorized by market supervisory authorities.
In particular, according to Vaneck, Bitcoin will increasingly represent a tool capable of protecting investors from monetary inflation, similar to gold.
Speaking of gold, we remember what was expressed in December by VanEck consultant Gabor Gurbacs, who on X gave his contribution by imagining what could happen after the approval of a spot ETF.
His predictions indicate that Bitcoin will follow a similar pattern to that of the yellow commodity, which in 2024, when the SPDR Gold ETF (GLD) was introduced, began an unprecedented upward trend.
In the following 8 years, the price of gold has quadrupled, going from $400 to $1,800, adding $8 trillion in market capitalization.
The VanEck consultant believes that the approval of the first exchange-traded fund for Bitcoin could have similar effects, bringing trillions of dollars of value into the market, but with a greater acceleration.
Already in 2024, several capital inflows are expected in the crypto sector, which will likely push Bitcoin close to its previous all-time high of $69,000.
