Tag: Vaneck

Solana’s SOL Price Predicted to Surpass $3000 in Bullish Scenario by 2030

by Blockchain News

A detailed analysis by VanEck, a major asset management firm, sketches various valuation scenarios for Solana (SOL) by the year 2030, amid the blockchain’s remarkable performance and its strive for scalability, dated October 27, 2023.

VanEck’s examination lays out three potential SOL price paths by 2030: a bearish $9.81, a bullish $3,211.28, and a base case of $335, driven by diverse market shares and revenue estimations across key sectors. This is part of a broader scenario where Solana emerges as the first blockchain to host an application with over 100 million users. Despite the envisioned lower monetization rate at 20% of Ethereum’s (ETH) and smaller market shares due to community philosophy differences, there’s a credible trajectory to $8 billion in revenues for SOL token holders by the end of the decade.

Central to Solana’s promise is its technical prowess, particularly in scaling blockchain operations. Through rigorous optimization, Solana achieves higher transaction throughput, surpassing many legacy competitors. This technical edge extends to its data throughput capacity, a critical metric for blockchain efficacy, which is slated for a tenfold increase with the upcoming Firedancer upgrade. The blockchain’s unique features like Local Fee Markets further refine the user experience by effectively managing transaction costs and system congestion.

Solana’s innovative spirit has birthed an array of ventures, such as blockchain-optimized mobile phones and consumer-centric applications like decentralized mapping. Its initial vision of becoming a “Decentralized Nasdaq” has broadened with the advent of intriguing non-financial applications, underpinned by partnerships with industry giants like Shopify, Visa, and Google, which augment its ecosystem.

However, sustainability concerns loom. A glaring discrepancy between Solana’s revenue ($1.26 million) and blockchain security costs ($52.78 million) over a recent 30-day period underscores the pressing need for a more balanced financial framework. The continuous influx of speculative capital to offset validator selling pressure, against a backdrop of minuscule transaction fees, paints a challenging picture for long-term economic viability.

Solana’s journey is also marred by technical instabilities, with notable network downtimes between January 2022 and February 2023. Despite subsequent improvements, the complexity of Solana’s design, coupled with a high bar of programming proficiency, hinders a broader developer engagement. The blockchain’s share of active crypto developers has stagnated around 6-7% over the last 18 months, which might impede its ambition to host tomorrow’s blockbuster applications.

Utilizing a standardized valuation framework, VanEck projects a base SOL token valuation of $335 by 2030, based on an expected real rate of return applied to the terminal year’s Free Cash Flow. The projection, however, is pinned on substantial growth in user and developer adoption, which presently trails that of Ethereum. The potential implementation of token-voting governance by 2030 could enhance SOL token economics, provided a vibrant ecosystem activity ensues.

Solana, with its relentless focus on user-centric innovations and blockchain efficiency, offers a compelling narrative. Yet, its path to significant valuation and ecosystem growth is fraught with technical, financial, and developer adoption challenges that require diligent addressing to ensure a robust and sustainable blockchain platform through 2030 and beyond.

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VanEck Pledges 10% of Ethereum ETF Profits to Protocol Guild

by Blockchain News

VanEck, a notable investment management firm, has committed to donating 10% of the profits from its Ethereum Strategy ETF (EFUT) to Protocol Guild for a minimum duration of ten years. This declaration came ahead of the anticipated launch of the ETF, symbolized as EFUT, which is expected to play a significant part in fostering mainstream Ethereum adoption. The announcement was made on September 30, 2023, through a series of tweets from VanEck’s official Twitter account.

Protocol Guild is a community-centric funding mechanism dedicated to supporting individuals instrumental in maintaining and advancing the core protocol of the Ethereum blockchain. By providing financial backing, Protocol Guild contributes to the continuous development and stability of the Ethereum network, which is pivotal for various decentralized applications (dApps) and smart contract operations.

The pledged funds are aimed at supporting Protocol Guild, a community-driven funding platform that provides financial backing to approximately 150 individuals crucial to the maintenance and development of Ethereum’s core protocol. This initiative is in recognition of the extensive contributions made by Ethereum developers towards the evolution of the blockchain, including the recent major network upgrades known as the Merge and Shanghai.

Among the key entities benefiting from Protocol Guild’s support are the individuals and communities involved in the development of EIP-4844, dubbed “Proto-Danksharding.” This protocol upgrade is geared towards reducing costs for Layer 2 solutions, thereby enhancing Ethereum’s accessibility. Notable crypto entities like Lido Finance, Uniswap, Arbitrum, Optimism Foundation, ENS Domains, MolochDAO, and NounsDAO, have previously contributed to Protocol Guild, reflecting a broader communal effort to support Ethereum’s ongoing development.

In its announcement, VanEck also beckoned other asset managers and ETF issuers to consider similar gestures of giving back to the Ethereum community, especially if they stand to gain from the protocol’s advancements. The company has organized a community discussion scheduled for October 4, 2023, to delve further into this initiative and its broader implications on the Ethereum ecosystem.

VanEck has already initiated marketing campaigns for the EFUT, hinting at a possible launch on October 2, 2023. The ETF will be listed on the Chicago Board Options Exchange and will be overseen by Greg Krenzer, VanEck’s head of active trading. The marketing efforts included TV ads aired on September 28, 2023, under the tagline “Enter the Ether,” amplifying the anticipation for the ETF’s launch.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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VanEck Announces Launch of Ethereum Futures ETF (EFUT)

by Blockchain News

VanEck, a renowned player in the financial markets, has unveiled its plans to launch the VanEck Ethereum Strategy ETF (EFUT). This actively managed exchange-traded fund is strategically designed to target capital appreciation through investments in Ethereum (ETH) futures contracts. Notably, EFUT will not directly invest in ETH or any other digital assets.

The fund’s investment strategy revolves around standardized, cash-settled ETH futures contracts. These contracts are actively traded on commodity exchanges that are registered with the Commodity Futures Trading Commission (CFTC). It’s worth mentioning that, at present, EFUT primarily intends to engage with ETH futures traded on the Chicago Mercantile Exchange.

EFUT will be listed for trading on the CBOE (Chicago Board Options Exchange) and will be under the active management of Greg Krenzer, who serves as the Head of Active Trading at VanEck. With over two decades of experience in trading across various asset categories, including futures, Mr. Krenzer brings a wealth of expertise to the fund’s management.

This strategic move to introduce EFUT complements VanEck’s existing offering, the VanEck Bitcoin Strategy ETF (XBTF), which also focuses on futures contracts related to digital assets. Both EFUT and XBTF follow a C-Corp. structure, offering a potentially more tax-efficient experience for long-term investors. Notably, XBTF does not directly invest in Bitcoin (BTC) or other digital assets.

VanEck is renowned for its forward-thinking approach in the financial markets, consistently identifying trends that create impactful investment opportunities. With a history of pioneering access to international markets, the firm has played a pivotal role in shaping the investment management industry. From gold investing in 1968 to emerging markets in 1993 and exchange-traded funds in 2006, VanEck’s commitment to innovation is evident.

As of August 31, 2023, VanEck manages approximately $80.8 billion in assets, spanning mutual funds, ETFs, and institutional accounts. The firm offers a diverse range of active and passive investment strategies, backed by robust investment processes. These strategies cater to various investment needs, from core opportunities to specialized exposures, enhancing portfolio diversification. VanEck’s active strategies are driven by in-depth research and security selection, led by portfolio managers with direct experience in their respective sectors and regions.

Since its inception in 1955, VanEck has prioritized its clients’ interests, regardless of market conditions, underscoring its core mission.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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Ethereum’s Potential Surge: VanEck Predicts ETH Value to Reach $11.8k by 2030 Amid Booming Smart Contract Adoption

by Blockchain News

In a recent report, investment management firm VanEck predicts that the Ethereum (ETH) token price could surge to $11,800 by 2030. The forecast is grounded on the revised valuation model estimating that Ethereum’s network revenues will significantly rise from the current $2.6 billion annually to $51 billion by the end of this decade, assuming Ethereum retains a 70% market share among smart contract protocols.

This report’s valuation methodology hinges on the projection of future cash flows. These projections factor in estimated Ethereum revenues, a global tax rate, and a share of the revenue for validators. The cash flow yield is set at 7%, with a 4% long-term crypto growth rate. This results in a fully diluted valuation (FDV) of Ethereum, which is then discounted by 12% to provide an estimate of Ethereum’s current value.

Ethereum’s revenues stem from transaction fees and Miner Extractable Value (MEV). Users bear these costs for using services on the Ethereum blockchain, with a part of these transaction costs allocated to validators and the rest being income for Ethereum. Moreover, Ethereum’s “Security as a Service” (SaaS) model is also highlighted as a potential revenue stream, enabling the securing of external applications, protocols, and ecosystems.

The report also analyzes the potential of various economic sectors, such as Finance, Banking, Payments (FBP), Metaverse, Social and Gaming (MSG), and Infrastructure (I), shifting their activities onto smart contract platforms. Current trends suggest that businesses might cover transaction fees to simplify the user experience, a practice that would mirror traditional business models.

VanEck’s report points out the crucial role of MEV in blockchain security due to its high value and considers Layer 2 (L2) solutions as the future of Ethereum transaction execution, despite the potential competition from numerous L2 chains.

However, the report also acknowledges the uncertainties around Ethereum’s future, reflected in the use of a 12% discount rate in its valuation model. 

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SEC Rejects VanEck Spot Bitcoin Trust Proposal

by Blockchain News

The United States Securities and Exchange Commission has denied a proposal by investment manager VanEck for the creation of a spot Bitcoin trust, a financial product that would allow investors to trade Bitcoin on regulated exchanges. This marks the latest instance of the SEC denying every application for a spot Bitcoin trust, with almost 20 such applications having been filed over the last six years.

In a statement, SEC Commissioners Mark Uyeda and Hester Peirce criticized the Commission’s decision and alleged that it was using a different set of criteria to evaluate spot Bitcoin trusts as compared to other commodity-based exchange-traded products (ETPs). The statement reads, “In our view, the Commission is using a different set of goalposts from those it used—and still uses—for other types of commodity-based ETPs to keep these spot bitcoin ETPs off the exchanges we regulate.”

The SEC’s decision comes amidst increasing institutional interest in Bitcoin and cryptocurrency investments, with Bitcoin recently reaching all-time highs in price. However, the SEC has been hesitant to approve financial products based on cryptocurrencies due to concerns about market manipulation, volatility, and fraud.

The proposed spot Bitcoin trust would have allowed investors to trade Bitcoin on regulated exchanges, providing greater accessibility to the cryptocurrency market. However, the SEC’s decision means that investors will continue to be limited in their ability to invest in Bitcoin through regulated channels.

VanEck had previously attempted to launch a Bitcoin ETF (exchange-traded fund) in 2017 but withdrew its application after facing resistance from the SEC. The investment manager had hoped that its proposal for a spot Bitcoin trust, which would have required less regulatory approval than an ETF, would have been more successful.

Despite the SEC’s decision, Bitcoin and other cryptocurrencies remain popular investments among retail and institutional investors. However, the lack of regulatory oversight and potential for market manipulation in the cryptocurrency market continues to be a concern for regulators and investors alike. The denial of VanEck’s proposal for a spot Bitcoin trust highlights the ongoing debate over how best to regulate and integrate cryptocurrency investments into traditional financial systems.

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VanEck Grants $35m Investments from Two Fairfax County Funds

by Blockchain News

VanEck, a global investment manager that provides Exchange Traded Fund and Mutual Funds, has announced that it has granted a $35 million investment from Fairfax County in Virginia. 

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The asset manager revealed that the investment was from two of Fairfax County’s retirement systems, including the Fairfax County Employees’ Retirement System and the Fairfax County Police Officers Retirement System respectively.

According to the announcement, Fairfax County may still be injecting additional cash in the near future as the investment was described as the initial tranche of commitment into the VanEck New Finance Income Fund, LP.

Fairfax County’s interest in investing in the VanEck New Finance Income Fund shows that the current crypto winter is not impacting the overall trust in the potential of digital currencies by institutional investors. 

The New Finance Income Fund, according to VanEck, was established back in December 2021 and is “designed to seek income opportunities for investors via short-term lending arrangements with digital assets entities through a simplified approach that alleviates the operational burden of direct digital assets lending.”

The asset manager said the fund is only available to institutional investors and takes away the hurdles associated when investors choose to invest in the nascent asset class themselves directly.

VanEck is a major player in the crypto ETF scene that has been making a valid case for institutional investors to wade into the crypto ecosystem. The firm comes off as one of the first organizations that started lobbying the United States Securities and Exchange Commission (SEC) to approve a spot Bitcoin ETF. 

While VanEck has quite a number of Bitcoin ETF rejections from the SEC, the firm was ranked as the second to win the regulator’s approval to establish a Bitcoin Futures ETF product in the US after ProShares last year. The company’s products are diversified and have products tracking Bitcoin mining.

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VanEck to Launch Community NFT Collection

by Blockchain News

VanEck, one of the few American asset managers that have a Bitcoin futures Exchange Traded Fund (ETF) product, has announced the launch of its Community NFT Collection.

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The firm said the NFT collection is the first of its kind for any asset manager globally and that it will be resident on the Ethereum blockchain network.

The Community NFT Collection, a collection of 1,000 uniquely built digital currencies, was floated in conjunction with South Korean-based startup NOMOMO and was designed as a membership card for the few lucky individuals who will lay their hands on them.

“We’ve designed the VanEck Community NFT to function as a digital membership card, providing NFT holders with exclusive access to a wide range of events, digital asset research, and the insights of an inclusive community of digital assets enthusiasts and investors,” said Matthew Bartlett, VanEck Community NFT Co-Founder.

The NFT collection is symbolic as it will tell the story of finance, drawing insight from the past, evaluating the present, and projecting an ambitious run for the future. With Hammy, modelled after Alexander Hamilton, as its theme personality, the VanEck Community NFT is divided into three unique categories, including commons (which will total 750), rare (approximately 230), and legendary (approximately 20).

The NFT collection will be airdropped to the first 1,000 individuals that register on the project’s portal page starting this week. The VanEck NFT showcases the growing popularity of digital art and collectables, which has been taken to a whole new level by prestigious collections like the Bored Ape Yacht Club (BAYC), and CryptoPunks, amongst others.

Besides VanEck, other major players in the investment and banking world have also waded into the growing NFT world. From KPMG in Canada, which acquired a World of Women (WoW) NFT to identify with the ideology of the entire collection, to Dolce & Gabbana, which has floated its own exclusive NFT collection, the embrace of NFTs by multinational firms is arguably going mainstream today.

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VanEck launches its first multi-token cryptocurrency fund

by Cointelegraph

On Monday, VanEck, a financial institution with close to $82 billion in assets under management with exchange-traded funds, or ETFs, mutual funds, and institutional accounts, announced the launch of its first cryptocurrency fund. The fund is listed as an exchange-traded note, or ETN, on the Deutsche Borse Xetra and SIX Swiss Exchanges with exposure to Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), Solana (SOL), Tron, Avalanche (AVAX), and Polygon (MATIC).

Gijs Koning, co-head of VanEck Europe, elaborated on why it was important for the firm to facilitate investment in digital currencies:

In early 2017, we determined that digital assets could provide a store of value alternative to currencies and gold, as well as a host of technology solutions that could bring down costs in the payments and investing industries.

While VanEck’s cryptocurrency financial products are gaining traction in Europe, they face regulatory hurdles in the U.S. There, the firm’s offerings are limited to private digital currency funds for institutional investors and only stock-based ETFs comprised of companies utilizing blockchain technology.

Last November, the U.S. Securities and Exchange Commission rejected VanEck’s Bitcoin spot ETF application. In explaining the decision, the regulatory agency cited that the underlying exchange responsible for listing the ETF, the Cboe BZX, did not have a proper “surveillance-sharing agreement with markets trading the underlying assets [of Bitcoin].” The SEC then used the same rule to reject Fidelity’s Wise Origin Bitcoin Trust spot ETF the week prior. Two ETFs, the ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF, received SEC approval partly because they track the price of regulated Bitcoin futures contracts, and not its spot price derived from averages of numerous exchanges.