Bitwise Pledges 10% of Spot Bitcoin ETF Profits for Bitcoin Open-Source

Bitwise Asset Management has revealed plans to allocate 10% of profits generated by its Bitwise Bitcoin ETF (BITB) to three non-profit organizations dedicated to funding open-source development within the Bitcoin community.

Advancing Bitcoin Development with ETF Profits

In a recent announcement, Bitwise CEO Hunter Horsley expressed the company's commitment to supporting Bitcoin's original developers, often referred to as the "unsung heroes" who have been integral since the cryptocurrency's inception.

Horsley emphasized the unique nature of Bitcoin, which was launched 15 years ago without a fundraising effort and has been maintained by a dedicated community of open-source developers. The move to contribute a portion of ETF profits aims to give back to these developers and foster further growth within the Bitcoin industry.

SEC Approval and Potential Investor Exposure to Bitcoin

The announcement comes in the wake of the United States Securities and Exchange Commission's (SEC) approval of 11 spot Bitcoin ETF applications on January 10. This regulatory green light now allows traditional asset managers to offer clients exposure to Bitcoin through ETFs, potentially attracting investors who had not previously considered owning Bitcoin.

Long-Term Commitment to Bitcoin Development

Bitwise clarified that the donations are not expected to be repaid, and the company plans to make annual contributions for at least the next decade. The goal is to provide consistent support for Bitcoin open-source development, ensuring a sustainable and long-term commitment to the growth of the industry.

Selection Criteria for Non-Profit Organizations

The non-profit organizations selected to receive the donations demonstrated a strong track record in supporting Bitcoin open-source development. The recipients were chosen based on their specific mission and established history of contributing to the growth and advancement of Bitcoin's core development.

Mike Schmidt, the executive director of one of the recipient organizations, Brink, emphasized the importance of continuing to support those actively building the future of Bitcoin. This commitment to sustaining Bitcoin Core Development aligns with the broader industry sentiment following the recent approval of Bitcoin ETFs.

Bitwise Asset Management pledges to contribute 10% of profits from its Bitwise Bitcoin ETF to three non-profit organizations dedicated to funding open-source development within the Bitcoin community. The move aims to support the original developers and foster sustainable growth within the Bitcoin industry amid the recent SEC approval of spot Bitcoin ETFs.