Cryptonews Bitcoin News Bitwise to Donate 10% of Spot Bitcoin ETF Profits to Open-Source Bitcoin Development

Bitwise to Donate 10% of Spot Bitcoin ETF Profits to Open-Source Bitcoin Development

Jai Pratap

Last updated: January 10, 2024 23:58 EST | 1 min read

Bitwise Asset Management has unveiled plans to allocate 10% of the profits generated by its Bitwise Bitcoin ETF (BITB) to support Bitcoin open-source development.

CEO Hunter Horsley expressed enthusiasm about funding core developers, particularly those who have played pivotal roles since Bitcoin’s inception, referring to them as the “unsung heroes.” Horsley emphasized Bitcoin’s history of relying on a dedicated community of open-source developers, noting its launch 15 years ago without a formal fundraising process.

SEC Finally Approves Bitcoin Spot ETFs

The move by Bitwise comes shortly after the United States Securities and Exchange Commission (SEC) granted approval for 11 spot Bitcoin exchange-traded fund (ETF) applications on January 10.

The latest approval allows traditional asset managers to offer clients exposure to Bitcoin through ETFs, potentially attracting investors who have not previously held Bitcoin.

Contrary to expecting repayment, Bitwise clarified that the donations, which will amount to 10% of the Bitwise Bitcoin ETF profits, are intended to contribute to the expansion of the Bitcoin industry.

Donation Will be Made Annually for a Decade

Hunter Horsley stated, “The donations have no strings attached and will be made annually for at least the next 10 years.”

Bitwise’s decision to support Bitcoin open-source development aligns with its recognition of the importance of established credibility. The selected non-profit organizations, including Brink, demonstrated a proven track record in funding Bitcoin open-source development.

Mike Schmidt, the executive director of Brink, emphasized the significance of sustained support for those building Bitcoin’s future, especially in the wake of the SEC’s approval of Bitcoin ETFs.

“It is important to support Bitcoin Core Development in a long-term sustainable way,” Schmidt remarked, underscoring the commitment required to ensure the continued growth and innovation within the Bitcoin ecosystem.