Yesterday, Alex Krüger, a renowned crypto analyst, provided his thoughts on the entity likely to be at the helm of the next cryptocurrency market surge. Krüger states that traditional finance, commonly referred to as ‘Tradfi,’ will play a crucial role in this regard.
As the crypto landscape undergoes increased regulation and appears to be settling into a more stable, albeit less thrilling phase, it paves the way for traditional financial players to get involved. According to Krüger, these traditional institutions will be the primary drivers or ‘pumpers’ of your investment bags in the future cycle, signifying a fundamental change in market dynamics.
This comment was made in response to an announcement made by global investment firm VanEck.
On September 29, VanEck announced its plan to allocate 10% of profits from its forthcoming Ether futures exchange-traded fund (ETF) to Ethereum’s core developers. This commitment will span a decade and aims to support Protocol Guild, an organization focused on Ethereum’s development and governance. Protocol Guild plays a crucial role in the Ethereum ecosystem, serving as a hub for developers, researchers, and other stakeholders. It is involved in various activities, from proposing protocol upgrades to ensuring network security and scalability.
The organization also functions as an intermediary among different groups within the Ethereum community, such as developers, miners, and users. Given Ethereum’s decentralized nature, Protocol Guild’s role in facilitating consensus on various issues is vital.
VanEck’s initiative aligns with its belief that investment managers should share a portion of their earnings with the community responsible for the cryptocurrency’s development. The firm also urged other asset managers and ETF issuers to adopt similar practices, emphasizing that traditional finance should give back to the Ethereum community.
VanEck is set to launch its Ether Futures ETF, known as EFUT, which will focus on investing in standardized cash-settled ETH futures contracts listed on Commodity Futures Trading Commission-approved exchanges. Specifically, the fund plans to invest in ETH futures available on the Chicago Mercantile Exchange. The ETF will trade on the Chicago Board Options Exchange and will be overseen by Greg Krenzer, who has over two decades of trading experience.
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