Bitwise commits to allocating 10% of Bitcoin ETF earnings to bolster open-source development
Bitwise, the manager of the Bitwise Bitcoin ETF, has made a commitment to donate 10% of its profits to support Bitcoin open-source development. The company plans to distribute the proceeds from its Bitcoin spot ETF to three crypto organizations: Brink, OpenSats, and Human Rights Foundation. Bitwise aims to express gratitude to the various individuals and groups working to improve the world through Bitcoin, including developers, researchers, builders, educators, and investors.
Another investment firm, VanEck, has also pledged to allocate 5% of potential profits from its proposed spot Bitcoin ETF to support Bitcoin core developers at Brink. VanEck recognizes the crucial role that developers play in the Bitcoin ecosystem and expresses gratitude for their contributions.
These announcements come shortly after the U.S. Securities and Exchange Commission (SEC) granted approval to 11 firms, including Bitwise, BlackRock, and Grayscale, to offer the first U.S.-listed exchange-traded funds (ETFs) tracking Bitcoin. These ETFs will be listed on registered national exchanges such as Nasdaq, NYSE, and CBOE, with trading starting on January 11.
Prior to the approval, BlackRock and ARK 21Shares amended their applications to disclose even lower fees than previously mentioned. However, Bitwise still offers the lowest management fees at 0.2%, followed by ARK 21Shares, BlackRock, and Fidelity in that order.
In conclusion, Bitwise and VanEck have committed to supporting Bitcoin open-source development by allocating a portion of their profits to organizations that contribute to the Bitcoin ecosystem. This pledge comes in the wake of the SEC’s approval of Bitcoin ETFs, allowing these firms to offer ETFs tracking Bitcoin on major U.S. exchanges.
