As excitement regarding the launch of the much-anticipated Ethereum Spot Exchange-Traded Funds (ETFs) brews, asset management company, Bitwise, in a groundbreaking move for the crypto industry is set to donate a portion of its profits from its ETH spot ETF to Ethereum open-source developers. This move by Bitwise demonstrates the broader understanding of the value of supporting open-source initiatives that encourage and develop blockchain technology.
Bitwise’s Ethereum Spot ETF Profits Goes To Open Source Developers
The asset management firm Bitwise disclosed its plans to support open-source developers with part of the profits, particularly 10% from its Ethereum spot ETF under the ticker (ETHW) on Monday evening.
It is worth noting that Bitwise’s ETHW fund is the newest addition to a broad range of 20 crypto products and the company’s eight publicly traded cryptocurrency funds. ETHW features an inexpensive 0.20% management charge. However, on the first $500 million in assets, the fee is set at 0% for the first six months.
The fund will be traded on the New York Stock Exchange while making use of experienced service providers, such as KPMG as auditors, Bank of New York Mellon as administrators, and Coinbase Custody Trust Company as digital asset custodians.
Related Reading: Ethereum Spot ETFs Sparks Institutional Optimism, Surpassing Retail Sentiment
Following the launch of the fund, Bitwise has declared that two major firms would receive a donation of 10% of all ETHW earnings, along with the product’s introduction. The first organization listed by Bitwise is Protocol Guild, a community-based funding platform that assists over 170 key contributors to the research and development of the Ethereum Layer 1 protocol. Secondly, the PBS Foundation, a nonprofit that provides funding for open-source Ethereum block relays and surrounding research.
Hong Kim, the Chief Technology Officer (CTO) of Bitwise stated that a group of enthusiastic open-source developers currently manages Ethereum as an open-source technology. Therefore the goal of every ETHW investment is for ETH to keep expanding, and this donation program will assist in achieving this target.
Furthermore, the firm has highlighted its intention to promote transparency by making the ETH addresses of all ETHW holdings available, as it will enable any investor to confirm the fund’s holdings and transactions directly on the blockchain.
ETH Spot ETFs Launch To Drive Ether’s Value To New All-Time High
Given the impact of the Bitcoin Spot Exchange-Traded Funds inception on Bitcoin’s price, Bitwise is confident that the same will happen with the value of Ethereum following the introduction of the ETH spot ETFs.
According to the firm’s Chief Information Officer, Matt Hougan, after Bitcoin was made available through an ETF version, over $17 billion in new capital entered into the crypto space in just a few months, driving BTC to a new peak. Thus, with ETH attracting such significant inflow and potentially more after its spot ETF launch, Hougan expects the crypto asset to reach new all-time highs before 2024 closes.
Featured image from Medium, chart from Tradingview.com
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