Bitwise plans to leverage profits from its Bitcoin exchange-traded fund (ETF) to promote open source development within the Bitcoin community.
“Bitwise Asset Management announced today that the company will donate 10% of profits from the Bitwise Bitcoin ETF (ticker: BITB) to three non-profit organizations that fund open source Bitcoin development,” the report stated.
Crypto-assets fund manager Bitwise is donating a portion of Bitcoin ETF profits
Bitwise CEO Hunter Horsley said he is looking forward to being able to fund core Bitcoin developers. Especially those who have been around since its inception, whom he calls “unsung heroes.”
“Bitcoin was launched 15 years ago without fundraising and has always been maintained by a dedicated community of open source developers.”
Meanwhile, this follows news on January 10 that the US Securities and Exchange Commission (SEC) has approved 11 applications for Bitcoin exchange-traded funds (ETF).
However, SEC approval now allows traditional asset managers to provide clients with exposure to Bitcoin through ETFs. This is likely to be a more attractive method for investors who have not owned Bitcoin before.
Horsley explained that Bitwise does not expect to repay the donations. Rather, it aims to contribute to the expansion of the Bitcoin industry.
“The donations have no conditions and will be made annually for at least the next ten years,” he added.
Read more: How to prepare for a Bitcoin ETF: a step-by-step approach
Bitwise receivers have proven reliability
However, the statement highlighted that the successful applicants jumped at the opportunity due to their established track record in supporting open source Bitcoin development.
“Recipient nonprofits were selected based on their specific mission and proven track record of funding open source Bitcoin development.”
Brink’s CEO Mike Schmidt, who will be one of the beneficiaries, explained the importance of continuing to support those building the future of Bitcoin amid the approval of a Bitcoin exchange-traded fund.
“It is important to support the fundamental development of Bitcoin in a long-term sustainable way,” Schmidt stated.
Read more: 4 Best Platforms to Learn and Earn Cryptocurrencies in 2024
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