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Bitwise Promises Support To Ethereum’s Open-Source Development

Bitwise has committed to allocate 10% of the profits from its newly launched spot Ethereum ETF to support Ethereum open-source development.

By Ruholamin Haqshanas

Last Updated: Jul 23, 2024

Bitwise to Allocate 10% of Spot Ethereum ETF Profits to Support Ethereum Open-Source Development

Bitwise Asset Management committed 10% of the profits from its newly launched spot Ethereum ETF to support Ethereum open-source development, on 22 July 2024.

In a press release, the Chicago-based crypto index fund manager revealed that it will donate a portion of the ETF’s profits to bolster Ethereum’s development community.

Specifically, Bitwise will channel these funds to two key organizations. One of the organizations is Protocol Guild, which provides financial backing to Ethereum developers. Another is the PBS Foundation, a non-profit dedicated to Ethereum research.

Explore: How to Buy Ethereum in 2024 – Simple Guide for Beginners

Bitwise Resumes Donations For At Least A Decade

Bitwise claimed that the donation will be made without any conditions and will continue annually for at least the next decade.

Hong Kim, Chief Technology Officer at Bitwise, weighed in. He explained that the initiative offers support to the often-overlooked developers who contribute to enhancing Ethereum’s security, scalability, and usability.

“Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers,” he said. “Every investor in ETHW wants Ethereum to continue to advance, and this donation program contributes to that goal.”

Notably, the firm previously pledged to donate 10% of profits from its spot Bitcoin ETFs. The organizations donated to included Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund.

The announcement coincides with the Securities and Exchange Commission’s (SEC) approval of spot ETH ETFs.

On 22 July 2024, the SEC granted approval for eight new ETFs, including the Grayscale Ethereum Mini Trust, Franklin Ethereum ETF, VanEck Ethereum ETF, and Bitwise Ethereum ETF, among others. These ETFs will provide investors with traditional market exposure to Ethereum, the world’s second-largest cryptocurrency.

The new Ethereum ETFs are set to begin trading soon, with most slated for the CBOE exchange. However, the Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF will be listed on the New York Stock Exchange, while the iShares Ethereum Trust will debut on the Nasdaq.

Explore: Beginner’s Guide to Ethereum mining

Could Ether Outperform Bitcoin After ETF Approval?

The introduction of spot Ether ETFs could potentially drive Ether to outperform its larger counterpart, Bitcoin, according to research firm Kaiko.

In a recent note, the firm said that the price of Ether relative to Bitcoin has risen from 0.045 to around 0.05 following the initial approval stage. This ratio indicates how much Bitcoin is required to purchase one Ether token, with a higher ratio favoring Ether.

The launch of Bitcoin ETFs has already resulted in a substantial price increase, with Bitcoin climbing approximately 50% this year to $63,400. Ether has also seen a significant rise, up 48% this year.

Matthew O’Neill, co-director of research at Financial Technology Partners, suggested that the availability of Ether ETFs would allow institutional investors to diversify their crypto portfolios beyond Bitcoin, potentially owning a mix of both assets.

He also noted that the market has not fully priced in the potential approval of these ETFs, with some investors remaining cautious until they officially start trading. As a result, O’Neill believes there is still room for Ether’s price to increase.

EXPLORE: What is Ethereum and How Does it Work?

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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Disclaimer
Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Ruholamin Haqshanas
Ruholamin Haqshanas
Crypto Journalist

Ruholamin Haqshanas is an accomplished crypto and finance journalist with over three years of experience. He has been featured in various high-profile outlets, including Cryptonews.com, Investing.com, 24/7 Wall St, and Business2Community. Read More

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