Bitwise and VanEck to Allocate ETF Profits to Bitcoin Development

Bitwise Asset Management has pledged to allocate 10% of the profits from its Bitwise Bitcoin ETF to the development of open-source Bitcoin projects.

Bitwise will donate 10% of the profits of the Bitwise Bitcoin ETF (ticker: BITB) to bitcoin open-source development.

Recipient orgs:
— @BitcoinBrink
— @OpenSats
— @HRF

Bitcoin is important to the future. We’re excited for $BITB to support its foundation ? pic.twitter.com/JMzd4bMOB9

— Bitwise (@BitwiseInvest) January 10, 2024

The firm has identified non-profit organizations Brink, OpenSats, and the Human Rights Foundation as recipients, who will receive and distribute the donations.

Bitwise plans to make these contributions annually for at least the next ten years.

The company noted that the first cryptocurrency emerged 15 years ago without venture capital involvement and has since been supported by a dedicated community of “unsung developer heroes.”

“The initiative will create a strong link between Bitcoin investors and the power of the open-source infrastructure,” the thread stated.

The company emphasized that this move expresses gratitude to the entire community striving to improve the world through the first cryptocurrency.

Jan van Eck, head of VanEck, noted that his company has advocated for ETF approval and conducted educational seminars and research since 2017.

The top executive stated that 5% of the profits from the VanEck Bitcoin Trust will support developers through Brink.

2/ Neither have we badmouthed the concept of decentralized, opensource software. Bitcoin and blockchain technology are public goods. That’s why we’re donating 5% of our profits to Bitcoin core developers. @bitcoinbrink

— Jan van Eck (@JanvanEck3) January 10, 2024

Bitwise first applied for a spot Bitcoin ETF five years ago, while VanEck did so three years ago.

On the evening of January 10, the U.S. Securities and Exchange Commission approved 11 applications for spot exchange-traded funds based on digital gold.

The approved issuers include Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin Templeton. Trading is expected to commence on January 11. 

A day before the official announcement, the SEC‘s account was compromised. Hackers posted a fake news story about the ETF approval, causing significant market volatility.