Bitwise plans to utilize profits from its spot Bitcoin exchange-traded fund (ETF) to bolster open-source development within the Bitcoin community.
“Bitwise Asset Management announced today that the company will donate 10% of profits of the Bitwise Bitcoin ETF (ticker: BITB) to three non-profit organizations that fund Bitcoin open-source development,” the report stated.
Crypto Asset Fund Manager Bitwise to Donate Portion of Bitcoin ETF Profits
CEO of Bitwise, Hunter Horsley, stated that he is looking forward to being able to fund Bitcoin core developers. Especially those who have been around since its inception, who he calls the “unsung heroes.”
“Bitcoin was launched 15 years ago without a fundraise and has always been maintained by a dedicated community of open source developers.”
Meanwhile, this follows the news on January 10 that the United States Securities and Exchange Commission (SEC) has approved 11 spot Bitcoin exchange-traded fund (ETF) applications.
However, the approval from the SEC now allows traditional asset managers to offer clients exposure to Bitcoin through an ETF. This could potentially be a much more attractive way for investors who have previously never owned Bitcoin.
Horsley clarified that Bitwise does not anticipate the donations to be repaid. Rather, it aims to contribute to expanding the Bitcoin industry.
“The donations have no strings attached and will be made annually for at least the next 10 years,” he further stated.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Bitwise Receivers Demonstrated Credibility
Yet, the statement highlighted that successful applicants seized the opportunity due to their established track record in supporting Bitcoin open-source development.
“The recipient non-profit organizations were selected based on their specific mission and established track record of funding Bitcoin open-source development.”
Brink executive director Mike Schmidt, who will be one of the recipients, outlined the importance of continuing to support those building the future for Bitcoin amid Bitcoin ETF approval.
“It is important to support Bitcoin Core Development in a long-term sustainable way,” Schmidt stated.
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