Bitwise Launches ETHW: Spot Ethereum ETF to Trade on NYSE, Donates 10% of Profits to Support Ethereum Development

Bitwise Launches ETHW: Spot Ethereum ETF to Trade on NYSE, Donates 10% of Profits to Support Ethereum Development

Bitwise’s ETHW, one of several spot Ethereum exchange-traded funds, is set to commence trading in the U.S. on Tuesday. The crypto asset manager has announced that it will allocate 10% of the ETF’s profits to support Ethereum developers.

According to a statement, the donations will be distributed between two organizations: Protocol Guild and PBS Foundation. Protocol Guild is a grassroots initiative that funds over 170 core contributors focused on Ethereum’s research and development. PBS Foundation, on the other hand, is a non-profit organization that finances open-source Ethereum block relays and related research.

“Ethereum, as an open-source technology, relies on a dedicated community of developers,” said Hong Kim, Bitwise’s Chief Technology Officer. “Investors in ETHW are invested in the future of Ethereum, and this donation program supports that ongoing development.”

Bitwise’s ETHW will be traded on the NYSE, with Coinbase serving as its digital asset custodian. The fund features a management fee of 0.2%, which will be waived for six months on the first $500 million in assets.

This initiative mirrors a similar move from January when Bitwise launched its BITB spot Bitcoin ETF. For BITB, Bitwise is donating 10% of the profits to three non-profits supporting Bitcoin’s open-source development: Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund, with annual donations planned for the next ten years.

To enhance transparency, Bitwise has previously published its Bitcoin addresses for ETF holdings and confirmed that it will disclose its Ethereum addresses for all ETHW holdings on Monday.

Spot Ethereum ETFs have received final approval to begin trading on Tuesday. Registration statements for companies aiming to launch a spot Ethereum ETF went effective on Monday, allowing firms such as 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco to commence trading. Registration forms for the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust also became effective.

Bitwise’s ETHW is launching about six months after its BITB product, which has seen over $2.2 billion in net inflows and has $2.7 billion in assets under management.

“Bitcoin ETPs were a game-changer for crypto; the launch of spot ether ETPs is the next step,” said Bitwise CIO Matt Hougan. “The availability of bitcoin in an exchange-traded format brought in more than $17 billion of new investment into crypto within months. We believe this launch will attract billions more and drive ether to new all-time highs in 2024.”

Hougan added, “Bitcoin and ether serve different purposes and have different drivers, so they play distinct roles in an investment portfolio. Bitcoin is akin to a monetary asset, while ether functions more like a high-growth tech stock. By enabling key blockchain applications like DeFi, NFTs, and stablecoins, ether provides exposure to the most innovative aspects of crypto. We’re thrilled to offer ETHW to help investors tap into crypto’s potential.”

Hougan recently projected that U.S. spot Ethereum ETFs could attract $15 billion in net inflows within their first 18 months, potentially driving ether prices to record highs above $5,000 by the end of the year.