Bitwise Pledge 10% Ethereum ETF Profits to Developers
Crypto index fund manager Bitwise has disclosed plans to support Ethereum open source developers with 10% of the profits from its spot Ethereum exchange-traded fund (ETF).
Bitwise will donate 10% of the profits of the Bitwise Ethereum ETF (ETHW) to Ethereum open-source protocol development.
Recipient orgs:
– @ProtocolGuild
– @PBS_FoundationWe cannot take Ethereum and its core protocol properties for granted.
We’re excited for ETHW to… pic.twitter.com/D0cAv8JmPt
— Bitwise (@BitwiseInvest) July 22, 2024
The announcement comes as the U.S. Securities and Exchange Commission (SEC) approved the trading of spot Ethereum ETF products, paving the way for broader institutional adoption and increased investor access to Ethereum.
Bitwise Shows Support for Ethereum
In a recent announcement, the firm pledge to donate 10% of profits from its Bitwise Ethereum ETF (ETHW) to Ethereum development organizations.
The two organisations are Protocol Guild, a grassroots funding organization that supports more than 170 core contributors to Ethereum’s protocol research and development, and PBS Foundation, a nonprofit that supports the research, development, and maintenance of open-source Ethereum infrastructure.
Hong Kim, CTO of Bitwise, emphasized the importance of these contributions saying:
Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers. We’re excited for the Bitwise Ethereum ETF to provide an additional source of funding for those unsung heroes who work tirelessly to improve the Ethereum network’s security, scalability, and usability every day.
Notably, the asset manager said that the donations have no strings attached and will be made annually over the next ten years. This decision portrays the firm’s long-time commitment to the sustainability and continuous improvement of the Ethereum network.
Bitwise to Disclose ETH Address Holdings
In addition to the donation announcement, Bitwise has said that all ETHW holdings will be visible through Ethereum addresses. This move is aimed at fostering transparency, giving any investor the ability to verify the fund’s holdings and flows directly on the blockchain.
Additionally, the management fee for ETHW is proposed to be 0.20%, but it will be exempted for the first half year of the implementation of the law on the first $500 million of its assets.
The launch of ETHW follows the success of the Bitwise Bitcoin ETF (BITB) launched earlier this year which quickly amassed $2.7 billion in assets under management.
Several analysts have forecast a potential rise of Ethereum following the spot ETFs approval. Meanwhile, the second largest cryptocurrency by market capitalization rose slightly by 1.05% to trade at $3,523 at press time.
The post Bitwise Pledge 10% Ethereum ETF Profits to Developers first appeared on Cointab.
