Supporting Innovation: Bitwise Pledges 10% Of Ethereum Spot ETF To Open-Source Developers

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As a seasoned researcher with extensive experience in the cryptocurrency industry, I am thrilled to see Bitwise taking a bold step towards supporting Ethereum open-source developers through its profits from the newly launched Ethereum spot ETF (ETHW). This move is not only groundbreaking but also demonstrates a deep understanding of the importance of investing in initiatives that foster and develop blockchain technology.

With the highly anticipated launch of Ethereum Spot Exchange-Traded Funds (ETFs) generating significant buzz, Bitwise Asset Management is making waves in the crypto industry by announcing its intention to give back to the Ethereum community. In a pioneering move, the asset management firm will donate a portion of its earnings from the ETH spot ETF to Ethereum open-source developers. This action by Bitwise underscores the importance of investing in the future growth and development of blockchain technology through open-source initiatives.

Bitwise’s Ethereum Spot ETF Profits Goes To Open Source Developers

Bitwise Asset Management announced their intention to give back to the open-source community by donating a significant portion of their earnings, specifically 10% from their Ethereum spot ETF (ETHW), on Monday night.

Noteworthy is that Bitwise recently introduced ETHW as their latest offering among the extensive collection of 20 crypto products and eight publicly traded cryptocurrency funds from the company. ETHW carries a manageable fee of only 0.20%. Remarkably, for the initial $500 million in assets, no fees are charged during the first six months.

On the New York Stock Exchange, the fund will be managed, with skilled professionals like KPMG handling auditing duties, Bank of New York Mellon overseeing administration, and Coinbase Custody Trust Company ensuring secure storage of digital assets.

After the rollout of the fund, Bitwise announced that two notable entities would each receive a 10% share of ETHW earnings, in addition to being introduced. The first entity named by Bitwise is Protocol Guild, a community-funding platform supporting over 170 key contributors engaged in Ethereum Layer 1 protocol research and development. Secondly, the PBS Foundation, a non-profit organization, which receives funding for Ethereum block relays and associated research projects.

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.

The company has emphasized its commitment to openness by disclosing the Ethereum wallet addresses associated with their ETHW holdings. By doing so, investors can independently verify the firm’s assets and transactions on the Ethereum blockchain.

ETH Spot ETFs Launch To Drive Ether’s Value To New All-Time High

Based on Bitcoin‘s price response after the inception of Bitcoin Spot Exchange-Traded Funds (ETFs), Bitwise asserts that the value of Ethereum is likely to experience a similar impact upon the introduction of Ethereum Spot ETFs.

The Chief Information Officer of the firm, Matt Hougan, stated that since Bitcoin became accessible via an ETF, approximately $17 billion in fresh capital flowed into the cryptocurrency market within a short timeframe, pushing Bitcoin to a new record high. Given Ethereum’s recent influx of investment and potential future growth following its spot ETF debut, Hougan anticipates Ethereum will reach new all-time highs before the end of 2024.

Supporting Innovation: Bitwise Pledges 10% Of Ethereum Spot ETF To Open-Source Developers

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2024-07-23 22:41