Crypto investment firm Bitwise will be donating 10% of its spot Ethereum ETF – exchange-traded fund – profits to ETH open-source developers.
The asset manager’s spot Ethereum ETF (ETHW) is scheduled to begin trading on the New York Stock Exchange starting July 23, after the US Securities and Exchange Commission’s (SEC) most anticipated approval of Ethereum funds.
“We cannot take Ethereum and its core protocol properties for granted,” Bitwise wrote on X.
“We’re excited for ETHW to support the work of those who tend to the Ethereum protocol. The unsung heroes who work tirelessly every day to improve Ethereum’s security, scalability, and usability.”
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
Further, Bktwise plans to donate the Ethereum ETF profits annually, for the next 10 years at least. However, the recipient organizations are subject to change according to Bitwise annual reviews.
Currently, per the company release, two organizations – Protocol Guild, which supports over 170 core Ethereum’s development and PBS Foundation, an open-source Ethereum infrastructure platform, will receive the donations.
“The Ethereum commons relies on open-source contributions from individuals around the world,” said Trent Van Epps, Protocol Guild member.
“Bitwise’s support for Protocol Guild members is a wonderful example of the ecosystem giving back to fund this essential stewardship.”
Bitwise Pledged 10% Profit Allocation From Spot Bitcoin ETF – BITB
Back in January, Bitwise pledged to allocate 10% of profits from its Bitcoin ETF (BITB) towards supporting Bitcoin open-source development. The company chose three non-profit organizations – Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund.
The firm carefully chose the recipient organizations based on their established track record and commitment to funding Bitcoin open-source development.
Similar to Bitwise, VanEck also committed to donate 5% of its spot Bitcoin ETF profits. It started by making an initial $10,000 donation to fund Bitcoin Core development.
Bitwise recently faced multi-million dollar lawsuit over fraud, negligence, and executing a “pump and dump” scheme that resulted in significant financial losses for investors. The company’s early investors – Mukamal family – has accused Bitwise top executives for $2 million in damages.
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