Crypto asset manager Bitwise announced today that Bitwise's ETHW, one of several spot Ethereum exchange-traded funds to begin trading in the US, will dedicate 10% of its profits to support Ethereum developers.
Bitwise Spot Ethereum ETF Will Donate 10% of Its Profits to Open Source Developers
Donations will be split between two organizations: Protocol Guild and PBS Foundation. Protocol Guild is a grassroots funding organization supporting more than 170 core participants dedicated to Ethereum research and development.
The PBS Foundation is a non-profit organization that funds open source Ethereum blockchains and related research.
“As an open-source technology, Ethereum is maintained by a dedicated community of open-source developers. “Every investor in ETHW wants Ethereum to continue moving forward, and this donation program contributes to that goal,” said Hong Kim, Chief Technology Officer at Bitwise. .
Bitwise's ETHW will be listed on the NYSE and Coinbase has been selected as the digital asset custodian. The fund's management fee is 0.2% and will be reduced to 0% for six months for the first $500 million in assets.
This initiative follows a similar move in January when Bitwise launched the BITB spot Bitcoin ETF. Bitwise has pledged 10% of BITB profits to three non-profit organizations that fund Bitcoin open source development:
Brink, OpenSats and the Human Rights Foundation's Bitcoin Development Fund. These donations will be made annually for at least the next ten years.
To promote transparency, Bitwise previously published Bitcoin addresses for ETF holdings and confirmed that it will also disclose Ethereum addresses for all ETHW holdings.
*This is not investment advice.