Bitwise To Donate 10% Of Ethereum ETF Profits To Open-Source Developers

Crypto fund manager Bitwise Asset Management on Tuesday announced that it will donate 10% of all profits from Bitwise Ethereum ETF (NYSE:ETHW) to support Ethereum‘s (CRYPTO: ETH) open-source development community.

What Happened: The donations will be directed to two key organizations: Protocol Guild, a grassroots funding organization supporting over 170 core contributors to Ethereum Layer-1 protocol research and development, and PBS Foundation, a non-profit funding open-source Ethereum block relays and related research.

Hong Kim, Bitwise’s Chief Technology Officer, emphasized the importance of this initiative, stating, “Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers. Every investor in ETHW wants Ethereum to continue to advance, and this donation program contributes to that goal.”

This move comes as Ethereum ETFs are set to make their debut in the U.S. market, with trading scheduled to begin later on Tuesday.

The Bitwise Ethereum ETF (NYSE:ETHW) will feature a management fee of 0.20%, with the fee waived for the first six months on the initial $500 million in assets.

In addition to the donation pledge, Bitwise has announced plans to publish the Ethereum addresses of all ETHW holdings, aiming to provide transparency and allow investors to verify the fund’s holdings and flows directly on the blockchain.

Also Read: How Blockchain Technology Is Transitioning From Hype To Practical Applications: Report

Why It Matters: The launch of Ethereum ETFs is expected to bring significant new investment into the cryptocurrency space.

Bitwise CIO Matt Hougan predicted that this development could drive Ethereum to new all-time highs in 2024, following the pattern set by Bitcoin ETFs, which attracted over $17 billion in new investments within months of their launch.

“Bitcoin and ETH have different strengths, different use cases, and different fundamental drivers, so investors are apt to have them assume different roles in a portfolio. Whereas bitcoin is a monetary asset with a role similar to alternatives, ETH plays more like a high-growth tech stock,” he said.

“By powering crypto’s ‘killer apps’ like DeFi, NFTs and stablecoins, ETH provides exposure to the most disruptive capabilities of blockchains. We’re excited to offer ETHW as a way for investors to gain greater access to crypto’s potential,” he added.

What’s Next: The influence of Ethereum as an institutional asset is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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