Crypto investment firm Bitwise will donate 10% of the profits from its Ethereum ETF – a listed fund – to open source ETH developers.
The asset manager’s ETF (ETHW) is scheduled to begin trading on the New York Stock Exchange starting July 23, following the most anticipated approval of Ethereum funds by the US Securities and Exchange Commission (SEC).
“We cannot take Ethereum and its basic protocol properties for granted,” Bitwise wrote on X.
“We are pleased that ETHW will support the work of those involved in the Ethereum protocol. The unsung heroes who work tirelessly every day to improve the security, scalability and usability of Ethereum.”
In addition, Bktwise plans to donate profits from Ethereum ETFs every year for at least the next 10 years. However, recipient organizations are subject to change according to Bitwise’s annual reviews.
Currently, according to the company’s announcement, two organizations will receive donations – the Protocol Guild, which supports the development of more than 170 Ethereum cores, and the PBS Foundation, an open-source Ethereum infrastructure platform.
“The Ethereum community relies on open source contributions from people around the world,” said Trent Van Epps, a member of the Protocol Guild.
“Bitwise’s support of Protocol Guild members is a great example of how the ecosystem is returning the favor to fund this essential governance.”
Bitwise’s declared allocation of 10% of the Bitcoin ETF’s profit – BITB
In January, Bitwise pledged to allocate 10% of profits from its Bitcoin ETF (BITB) fund to support the development of open source Bitcoin software. The company chose three non-profit organizations – Brink, OpenSats and the Human Rights Foundation’s Bitcoin Development Fund.
The company carefully selected the recipient organizations based on their established track record and commitment to funding the development of open source Bitcoin software.
Like Bitwise, VanEck also pledged to donate 5% of its profits from Bitcoin ETFs. It began by making an initial donation of $10,000 to fund the development of Bitcoin Core.
Bitwise recently faced a multimillion-dollar lawsuit over fraud, negligence and the implementation of a “pump and dump” scheme that caused significant financial losses for investors. The company’s initial investors – the Mukamal family – accused Bitwise executives of $2 million in damages.
