Bitwise Commits 10% of Ethereum Spot ETF to Open-Source Developers to Drive Innovation

Excitement is building as the launch of the highly anticipated Ethereum Spot Exchange-Traded Funds (ETFs) approaches. Bitwise, an asset management company, is making waves in the crypto industry by pledging to donate a portion of its profits from its ETH spot ETF to Ethereum open-source developers. This move by Bitwise underscores the importance of supporting open-source initiatives that foster the growth and advancement of blockchain technology.

Bitwise recently revealed its commitment to supporting open-source developers by allocating 10% of the profits from its Ethereum spot ETF (ETHW) to this cause. The ETHW fund is the latest addition to Bitwise’s array of 20 crypto products and eight publicly traded cryptocurrency funds. With a management fee of 0.20%, the fund offers a competitive fee structure, including a 0% fee on the first $500 million in assets for the initial six months.

The ETHW fund will be listed on the New York Stock Exchange and will utilize reputable service providers such as KPMG as auditors, Bank of New York Mellon as administrators, and Coinbase Custody Trust Company as digital asset custodians. Bitwise has also announced that it will donate 10% of all ETHW earnings to two prominent organizations: Protocol Guild, which supports key contributors to the Ethereum Layer 1 protocol, and the PBS Foundation, which funds open-source Ethereum block relays and related research.

Hong Kim, Bitwise’s Chief Technology Officer (CTO), emphasized the vital role of open-source developers in managing Ethereum’s growth as a technology. The primary objective of the ETHW investment is to facilitate the expansion of Ethereum, and the donation program is designed to contribute to this objective. Additionally, Bitwise aims to enhance transparency by providing access to the ETH addresses of all ETHW holdings, allowing investors to verify the fund’s holdings and transactions directly on the blockchain.

Drawing parallels with the impact of Bitcoin Spot Exchange-Traded Funds on Bitcoin’s price, Bitwise anticipates a similar effect on Ethereum’s value with the launch of ETH spot ETFs. Matt Hougan, Bitwise’s Chief Information Officer, highlighted the substantial capital influx into the crypto space following the introduction of Bitcoin ETFs, which propelled BTC to new highs. With Ethereum poised to attract significant inflows post the spot ETF launch, Hougan predicts that ETH will reach new all-time highs by the end of 2024.

In conclusion, Bitwise’s commitment to supporting open-source developers through its ETH spot ETF profits reflects a broader industry trend towards fostering innovation and growth within the blockchain ecosystem. As the crypto market continues to evolve, initiatives like these play a crucial role in advancing the adoption and development of digital assets like Ethereum.