Bitwise Donates To Open Source Bitcoin Development Amid Market Downturn

Asset management firm Bitwise has unveiled a new donation to support open-source innovation of the Bitcoin network. According to the firm’s update, this latest donation aligns with its promise to give back after its Bitwise Bitcoin ETF ($BITB) launch in January 2024. 

Bitwise Aim to Boost Bitcoin Development

At the time, Bitwise hinted at its plan to give 10% of its gross profits each year to charity. In a recent development, the asset manager announced the donation, saying it is finally fulfilling its promise to the public. 

Bitwise revealed on X that it will donate $150,000 to support Bitcoin’s open-source developers. The fund is designed to encourage developers who work tirelessly to secure and maintain the Bitcoin network. 

This is the first annual donation since the promise was made. Bitwise intends to allocate the funds to three non-profit organizations: Bitcoin Brink, Open Sats, and the Human Rights Foundation (HRF). It believes these entities already have established track records within the broader Bitcoin ecosystem. 

“Thank you to the investors who’ve chosen Bitwise and BITB among many options. This donation is made possible because of your choice. We hope you’re as proud as we are to support Bitcoin open-source developers,” Bitwise wrote on X.

The Donation Rationale

Significantly, this donation may trigger increased participation from developers as it promotes innovation and ensures the security of blockchain technology. Markedly, these open-source developers are crucial to the health status of the Bitcoin blockchain and, by extension, the broader crypto sector. 

The asset manager believes a donation of $150,000 could attract more talent into the ecosystem. Moreover, this funding positions Bitwise as a firm with futuristic goals and community links. 

This donation could also attract goodwill to the Bitcoin ETF issuer. Just like it does for Bitcoin, Bitwise also has staking pools, which is its way of supporting the Ethereum ecosystem, which also has ETF ties.

The Bitwise Donation Timing

Bitwise’s move coincides with the season in which the crypto sector is receiving more favorable policies. Several firms are submitting applications to list multiple crypto ETFs. 

They are encouraged by the improved trajectory of the crypto sector under President Donald Trump. Even Bitwise filed to list spot XRP ETF weeks ago. The US SEC has acknowledged this XRP ETF filing, officially kickstarting the countdown for the approval

The Commission had earlier acknowledged a similar filing from 21Shares a week ago. Through the crypto task force, many are positive the filing will gain approval amid broad rules review.