Bitwise to Donate 10% of Ethereum ETF Earnings to Ethereum Development Organizations
As the debut of spot Ether exchange-traded funds (ETFs) approaches, asset manager Bitwise has committed to donating 10% of its profits to Ethereum developers.
On July 22, the United States Securities and Exchange Commission (SEC) approved the final S-1 statements required for spot Ether ETFs to begin trading on major stock exchanges, including Nasdaq, the Chicago Board Options Exchange, and the New York Stock Exchange (NYSE).
Bitwise, as it launches its ETF on the NYSE, has announced that 10% of all profits from the Bitwise Ethereum ETF (ETHW) will be allocated to two organizations focused on Ethereum.
Bitwise to Donate 10% of ETF Profits to Ethereum Developers
According to Bitwise, the funds will be directed to Protocol Guild, which supports over 170 core contributors working on research and development for the Ethereum layer-1 protocol. Additionally, some proceeds will go to the PBS Foundation, a nonprofit that funds open-source Ethereum block relays and provides grants aimed at Ethereum decentralization.
Hong Kim, Bitwise’s chief technology officer, highlighted the importance of Ethereum’s community of open-source developers. Kim stated:
“Every investor in ETHW wants Ethereum to continue progressing, and this donation program supports that objective.” Bitwise has also committed to publishing the wallet addresses of all its ETHW holdings. This transparency will enable investors to verify the fund’s holdings and flows directly on the blockchain.
This pledge is similar to Bitwise’s previous commitment for its spot Bitcoin ETFs. In January, Bitwise announced it would donate 10% of its profits from the Bitwise Bitcoin ETF (BITB) to the development of Bitcoin.
In addition to Bitwise, VanEck made a pledge in January to donate 5% of its spot Bitcoin ETF profits to Bitcoin core developers and also contributed $10,000 to Bitcoin developers.
Ether Price Likely to React to ETF Inflows
Crypto analytics firm Kaiko suggests that the price of ETH will be sensitive to the inflows of the newly launched ETFs. Kaiko’s head of indexes, Will Cai, noted that while a full demand picture might take months to emerge, the price of ETH could be particularly responsive to inflow numbers in the initial days.
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