Bitwise's Pledge: Devoting 10% of Bitcoin ETF Profits to Open-Source BTC Development

Empowering Bitcoin Development

In an official statement on January 11, Bitwise unveiled its plan to direct earnings from its spot Bitcoin ETF to key crypto organizations, namely Brink, OpenSats, and the Human Rights Foundation. This decision underscores Bitwise's appreciation for developers, researchers, educators, investors, and the broader community dedicated to advancing the world through Bitcoin.

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

Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, emphasized Bitcoin's role in promoting freedom for financially oppressed individuals globally. He welcomed Bitwise's commitment to the Bitcoin Development Fund, initiated by the Human Rights Foundation to support transformative impact-enabling developers.

Bitwise, an early Bitcoin advocate, was among the first companies to advertise the asset and the upcoming spot ETF. The firm also announced a fee waiver for the initial six months or the first $1 billion in assets for the ETF, followed by a competitive 0.20% fee.

Similarly, VanEck committed to allocating 5% of potential profits from its proposed spot Bitcoin ETF to support core developers at Brink, recognizing their pivotal role in the Bitcoin ecosystem.

SEC Greenlights Spot Bitcoin ETFs

Anticipation for spot Bitcoin ETF approvals in the U.S. crypto sector culminated as the SEC approved 11 spot Bitcoin ETFs. These firms are now authorized to introduce the first U.S.-listed exchange-traded funds (ETFs) tracking Bitcoin, with listings on major exchanges such as Nasdaq, NYSE, and CBOE. Trading commenced at the CBOE from 9 am on January 11, coinciding with the U.S. stock market opening.

In the lead-up to approval, BlackRock and ARK 21Shares adjusted their applications, revealing even lower fees. Despite these adjustments, Bitwise leads with the lowest management fees at 0.2%, followed by ARK 21Shares, BlackRock, and Fidelity in sequence.