Bitwise to Support Bitcoin Open-Source Development with 10% of ETF Profits

What is the Bitwise Bitcoin ETF?

The Bitwise Bitcoin ETF (ticker: BITB) is a spot-based exchange-traded fund that aims to track the performance of the price of Bitcoin. It was launched on January 10, 2024, after receiving approval from the United States Securities and Exchange Commission (SEC). The ETF is managed by Bitwise Asset Management, a leading provider of investment solutions for institutional and retail investors.

The Bitwise Bitcoin ETF offers investors a convenient and cost-effective way to gain exposure to Bitcoin without having to buy, store, or secure the cryptocurrency themselves. The ETF holds physical Bitcoins in cold storage and trades on the NYSE Arca under the ticker BITB. The ETF has an expense ratio of 0.95% and a minimum investment amount of $100.

Why is Bitwise donating 10% of its profits to Bitcoin open-source development?

Bitwise announced that it will donate 10% of the profits generated by its spot Bitcoin ETF to three non-profit organizations that fund Bitcoin open-source development: Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund. The donated organizations include Brink, OpenSats, and Human Rights Foundation.

Bitwise stated that these donations have no additional conditions and will be made at least once a year for the next decade. The company expressed its appreciation for the community of open-source developers who have contributed to the security, scalability, and usability of the Bitcoin network since its inception in 2009.

How will these donations benefit Bitcoin open-source development?

The donations will support various projects and initiatives that aim to improve the Bitcoin ecosystem and foster innovation among its participants. Some examples are:

• Brink: A non-profit organization that provides funding for developers who work on improving Bitcoin Core, such as fixing bugs, enhancing privacy features, increasing transaction throughput, and supporting new protocols.
• OpenSats: A non-profit organization that supports developers who work on improving satoshi transactions, such as enabling faster confirmation times, reducing fees, increasing privacy protection, and supporting new applications.
• Human Rights Foundation’s Bitcoin Development Fund: A non-profit organization that supports developers who work on advancing human rights through Bitcoin technology, such as empowering marginalized communities, promoting financial inclusion, protecting data privacy, and supporting social justice causes.

These donations will help ensure that these projects continue to receive adequate funding and resources to achieve their goals. They will also demonstrate Bitwise’s commitment to supporting long-term sustainability in the Bitcoin industry.

What does this mean for investors?

The donations are not expected to affect the performance or returns of the Bitwise Bitcoin ETF. They are simply a way for Bitwise to contribute back to the community that has enabled its success. Investors who hold BITB shares can rest assured that their investment is safe and secure with Bitwise Asset Management.

The donations are also not intended to influence or interfere with any decisions or actions made by other stakeholders in the Bitcoin ecosystem. They are simply a gesture of goodwill and recognition for those who have made significant contributions over time.

The donations are subject to change based on annual review by Bitwise Asset Management. Investors can find more information about BITB and its funding program on [www.bitbetf.com/funding-bitcoin].