Bitwise launches its spot Ether ETF and commits to giving 10% of its profits to Ethereum development funds.
As the new spot Ether exchange–traded funds (ETFs) prepare for their debut, asset manager Bitwise has announced it will donate 10% of the profits from its Ether ETF to Ethereum developers.
On July 22, the U.S. Securities and Exchange Commission (SEC) approved the necessary filings for the launch of the spot Ether ETFs on major stock exchanges, including Nasdaq, the Chicago Board Options Exchange, and the New York Stock Exchange (NYSE).
Bitwise, which is launching its ETF on the NYSE, revealed that 10% of the profits from the Bitwise Ethereum ETF (ETHW) will be allocated to two key Ethereum-focused organizations.
Donation Details
The funds will be distributed to Protocol Guild, which supports over 170 core developers working on the Ethereum layer-1 protocol, and the PBS Foundation, a nonprofit that supports open-source Ethereum infrastructure and funds projects aimed at increasing Ethereum’s decentralization.
Hong Kim, Chief Technology Officer at Bitwise, stated that Ethereum’s progress relies on its community of open-source developers. Kim emphasized:
“Every investor in ETHW wants Ethereum to keep evolving, and this donation program helps achieve that goal.”
Bitwise also plans to publish the wallet addresses for its ETHW holdings to allow investors to directly verify the fund’s assets and transactions on the blockchain.
In January, Bitwise made a similar commitment for its Bitcoin ETF, promising to donate 10% of its profits to Bitcoin development. VanEck also pledged 5% of its spot Bitcoin ETF profits to Bitcoin core developers and made a $10,000 donation to the same cause.
Impact on Ether Price
Crypto analytics firm Kaiko suggests that the price of Ether may be affected by the inflows into the new ETFs. Will Cai, Kaiko’s head of indexes, noted that while it may take months to see the full impact, the initial ETF inflows could influence Ether’s price.
Summary Review: Bitwise’s commitment to donate 10% of its Ether ETF profits to Ethereum development marks a significant move towards supporting the growth of the Ethereum network. As the ETF begins trading, its impact on both Ethereum’s development and its market price will be closely watched. This initiative underscores the growing trend of integrating social responsibility into financial products, reflecting a broader shift in the cryptocurrency industry towards supporting its foundational technologies.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
