Bitwise Commits Ethereum ETF Profits to Development Support

Bitwise Asset Management has pledged to donate 10% of the profits from its new Ethereum ETF (ETHW) to organizations focused on Ethereum 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

Bitwise’s ETHW ETF, launching on July 23, will invest directly in ETH. The management fee is initially set at 0.20%, but will be waived for the first six months on the first $500 million in assets. The profits allocated for donation will support the Protocol Guild and PBS Foundation, which are key to advancing the Ethereum network.

Bitwise CTO Hong Kim highlighted the significance of this initiative, emphasizing the role of community-supported development in Ethereum’s evolution. The firm will also transparently disclose all ETH holdings related to the ETF.

The ETHW launch comes on the heels of the successful Bitwise Bitcoin ETF, which quickly amassed $2.7 billion in assets. Bitwise CIO Matt Hougan predicts that the new ether ETPs could drive Ethereum to new highs by the end of 2024, distinguishing Ethereum’s utility in decentralized applications from Bitcoin’s status as a monetary asset.

Meanwhile, Ethereum’s price has experienced fluctuations despite the ETF approval, with recent trading reflecting investor anticipation of a market rebound.