Bitwise Ether ETF Reveals 10% Profit Donation To Ethereum Developers

Bitwise Asset Management has announced a donation of 10% of ETHW’s profits to Ethereum development organizations for the upcoming launch of the Bitwise Ethereum ETF (ticker: ETHW), which is set to start trading on the New York Stock Exchange. This followed the approval of spot Ethereum ETF products for trading by the United States Securities and Exchange Commission (SEC).

Bitwise Ether ETF Reveals 10% Profit Donation 

According to a recent report, Bitwise Asset Management has unveiled plans for the Bitwise Ethereum ETF (ticker: Ethw), which is scheduled to join the New York Stock Exchange on the 23rd of July as a new listing. Bitwise has also announced that it will be donating 10% of the gains made from ETHW to Ethereum open-source protocol development.

Bitwise will donate 10% of the profits of the Bitwise Ethereum ETF (ETHW) to Ethereum open-source protocol development.

Recipient orgs:
– @ProtocolGuild
– @PBS_Foundation

We cannot take Ethereum and its core protocol properties for granted.

We’re excited for ETHW to… pic.twitter.com/D0cAv8JmPt

— Bitwise (@BitwiseInvest) July 22, 2024

The fund will have direct exposure to Ethereum (ETH), the second largest cryptocurrency by market capitalization. To start with, the management fee for ETHW is proposed to be 0. 20%, but it will be exempted for the first half year of the implementation of the law on the first $500 million of its assets. 

The annual contributions to the Ethereum development organizations will be given for the next ten years, and the organizations receiving the donation will be reviewed every year.

Support for Ethereum Open-Source Development

In connection with the launch of ETHW, Bitwise plans to continue the development and advancement of the Ethereum network. The donation program focuses on the Protocol Guild and PBS Foundation, which are vital entities in the Ethereum ecosystem. Protocol Guild helps more than 170 core contributors who are involved in the enhancement of the Ethereum Layer 1 protocol, while PBS Foundation backs the funding of open-source block relays of Ethereum and associated research.

Hong Kim, the CTO at Bitwise, highlighted the significance of these contributions, noting that

“Ethereum is an open-source technology that is supported by a community of open-source developers, and every investor in ETHW wants Ethereum to evolve. This is where the donation programme comes into play.”

Furthermore, all Bitwise Ether ETFs holdings will be disclosed by Bitwise on Ethereum addresses.

ETHW’s launch comes after the approval and entrance of the Bitwise Bitcoin ETF (BITB) which quickly reached $2.7 billion in AUM. Consequently, Bitwise CIO Matt Hougan highlighted how ether ETPs could influence the market and take ETH to new all-time highs by the end of 2024.

He highlighted Bitcoin’s and Ethereum’s different strengths and use cases, stating that while Bitcoin acts as a monetary asset, Ethereum powers “crypto’s killer apps’ like DeFi, NFTs, and stablecoins.”

Ethereum (ETH) Price Trend

Meanwhile, despite the Spot Ethereum ETF approval for trading, ETH price has been on a bearish turn with the price swaying between an intra-day high and low of $3,560.08 and $3,438.10, respectively. At press time, ETH price was down 2.40% from the resistance level trading at $3,449.

ETH’s market capitalization during the dip plummeted by 2.35% to $414,771,638,128 while its 24-hour trading volume surged by 36% to $18,576,969,558. This surge in trading volume reflect investors interest as they buy the dip in anticipation of a price recovery. Moreover, according to a Coingape prediction, the approval has a potential of rallying the price to $5000.

Read Also: Spot Ethereum ETF Trading Affirmed by US SEC