Asset management giant Bitwise announced that it will be donating 10% of profits derived from Bitwise Bitcoin ETFs, to the development of the Bitcoin network. Bitwise is one of the 11 beneficiaries to secure the approval of the US Bitcoin ETF on Wednesday, January 10, marking a watershed moment in the history of the financial world.

Bitwise Donating to Open-Source Development

The asset management giant has made a significant commitment to support the development of Bitcoin’s open-source ecosystem. The company has announced that it will donate 10% of the profits generated by the Bitwise Bitcoin ETF (BITB) to fund Bitcoin open-source development.

Bitwise will donate 10% of the profits of the Bitwise Bitcoin ETF (ticker: BITB) to bitcoin open-source development.

Recipient orgs:
– @BitcoinBrink
– @OpenSats
– @HRF

Bitcoin is important to the future. We’re excited for $BITB to support its foundation pic.twitter.com/JMzd4bMOB9

— Bitwise (@BitwiseInvest) January 10, 2024

Bitcoin, having been launched 15 years ago without a formal fundraising process, relies on a dedicated community of open-source developers. These individuals work tirelessly to enhance various aspects of Bitcoin, such as security, scalability, and usability.

Despite being unsung heroes, their contributions benefit all Bitcoin investors, says Bitwise. Recognizing the importance of sustaining this open-source work, Bitwise aims to create a strong alignment between BITB investors and the robustness of the underlying open-source infrastructure through recurring donations.

Bitwise has carefully chosen reputable non-profit organizations, including Bitcoin Brink, OpenSats, and HRF, to receive and allocate BITB’s recurring donations. These contributions, made annually, come with no strings attached and will persist for at least the next decade.

Having initially filed for a spot Bitcoin ETF five years ago, Bitwise sees the current milestone as a significant achievement. The company envisions BITB as the ETF that best serves the evolving landscape of the cryptocurrency space.

In expressing gratitude, Bitwise acknowledges the diverse contributors within the Bitcoin community, including developers, researchers, builders, educators, investors, and enthusiasts. The company recognizes its collective efforts to positively impact the world through Bitcoin, believing that the future is brighter because of its dedication.

Last week, VanEck also announced that it will donate 5% of its ETF profits for Bitcoin development.

Bitcoin Price Action

Bitcoin experienced a subtle surge, briefly reaching the $47,000 mark after the US Securities and Exchange Commission (SEC) granted approval for exchange-traded funds (ETFs) directly investing in the cryptocurrency. Traders are closely monitoring the market to gauge the level of capital inflow attracted by these newly approved financial products.

There has been speculation among market observers about a potential Bitcoin pullback following the SEC’s approval of spot ETFs. Traders may choose to capitalize on profits accumulated during the cryptocurrency’s extended bullish trend.

In the wake of this development, other major cryptocurrencies displayed mixed performance. Ether, the second-largest cryptocurrency, notably stood out, recording a 16% gain over the past 24 hours, reaching $2,583. This surge is due to expectations that Ether will become the focal point of the next wave of spot crypto ETF products in the United States. Investors are closely monitoring these dynamics to navigate the evolving landscape of cryptocurrency investments.

The post Bitwise Joins VanEck In Donating 10% ETF Profits to Bitcoin Development appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am