Bitwise to Allocate Share of ETH ETF Earnings to Support Ethereum Developers
Asset management firm Bitwise has announced its intention to allocate a portion of the profits from its Ethereum (ETH) exchange-traded fund (ETF) to support the network’s developers. The Bitwise Ethereum ETF (ETHW) commenced trading on the New York Stock Exchange, with Bitwise committing to donating 10% of the earnings to aid the ETH ecosystem.
The company specified that the profits generated from ETHW would be contributed to two organizations: Protocol Guild, a grassroots funding entity that assists over 170 core contributors to Ethereum layer-1 protocol research and development, and PBS Foundation, a non-profit organization that finances open-source Ethereum block relays and associated research initiatives.
Hong Kim, Bitwise’s Chief Technology Officer, emphasized that this financial commitment would play a pivotal role in fostering innovation within the Ethereum network. Kim highlighted the collaborative efforts of the open-source developer community in maintaining Ethereum’s technology and expressed the significance of the donation program in advancing Ethereum’s development objectives.
Matt Hougan, Bitwise’s Chief Investment Officer, drew distinctions between Ethereum and Bitcoin (BTC) in terms of investment dynamics. He characterized Bitcoin as a monetary asset akin to traditional alternatives, while positioning ETH as resembling a high-growth tech stock. Hougan underscored Ethereum’s pivotal role in powering disruptive applications such as DeFi (decentralized finance), NFTs (non-fungible tokens), and stablecoins, offering investors exposure to the transformative capabilities of blockchain technology.
As of the time of reporting, Ethereum was trading at $3,473, experiencing a marginal decline over the past 24 hours. Conversely, ETHW was priced at $24.93, also registering a slight decrease on the day.
The initiative by Bitwise to allocate a portion of the ETF profits to support Ethereum’s development highlights the growing recognition of the importance of fostering innovation and sustainability within the blockchain ecosystem. This strategic move not only underscores Bitwise’s commitment to advancing Ethereum’s technological landscape but also signifies a broader trend towards corporate social responsibility and community support within the cryptocurrency sector.
