Bitwise, the manager of a cryptocurrency index fund, has disclosed its commitment to contribute 10% of the proceeds from the Bitwise Bitcoin ETF to support the open-source development of BTC.
The decision aligns with the recent approval of the investment product on Wednesday, meeting widespread anticipations within the industry.
Bitwise to Fund Bitcoin Development
In a thread on X on January 11, Bitwise revealed its intention to direct the earnings from its spot Bitcoin ETF to three specific crypto organizations: Brink, OpenSats, and Human Rights Foundation.
The decision to contribute to these organizations stems from Bitwise’s desire to show appreciation to developers, researchers, educators, investors, and the entire community dedicated to enhancing the world through Bitcoin.
Bitwise will donate 10% of the profits of the Bitwise Bitcoin ETF (ticker: BITB) to bitcoin open-source development.
— Bitwise (@BitwiseInvest) January 10, 2024
Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, emphasized the significance of Bitcoin as a technology promoting freedom, particularly for financially oppressed individuals globally.
The Bitcoin Development Fund was initiated by the Human Rights Foundation to support the developers enabling this transformative impact, and Bitwise’s commitment to this cause is welcomed, he added.
Bitwise, an early advocate for Bitcoin, was among the first companies to launch advertisements highlighting the asset and the forthcoming spot ETF.
Additionally, Bitwise has announced a fee waiver for the initial six months or the first $1 billion in assets for the ETF, followed by a low 0.20% fee.
Similarly, investment firm VanEck recently committed to allocating 5% of potential profits from its proposed spot Bitcoin ETF to support core developers at Brink. VanEck acknowledged the pivotal role played by developers as essential pillars of the Bitcoin ecosystem, expressing gratitude for their contributions.
SEC Approves Spot Bitcoin ETFs
Over the past few months, the crypto sector has anticipated the potential approval of various spot Bitcoin ETF applications. This investment product, previously missing in the United States, appeared to be on an inevitable trajectory.
As the decision deadline approached, the SEC approved 11 spot Bitcoin ETFs. These firms are now authorized to introduce the first U.S.-listed exchange-traded funds (ETFs) that track Bitcoin.
The approved ETFs are set to be listed on all registered national exchanges in the U.S., including the Nasdaq, NYSE, and CBOE. Trading is scheduled to commence at the CBOE from 9 am on January 11, coinciding with the opening of the U.S. stock market.
In the hours leading up to the approval, BlackRock and ARK 21Shares revised their applications, disclosing even lower fees than initially stated.
Despite these adjustments, Bitwise remains the frontrunner with the lowest management fees at 0.2%, followed by ARK 21Shares, BlackRock, and Fidelity sequentially.
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