Bitrabo Editorial
As anticipation grows around the debut of Ethereum Spot Exchange-Traded Funds (ETFs), Bitwise, an asset management firm, has made a significant move within the crypto space by committing a portion of its earnings from the ETH spot ETF to aid Ethereum open-source developers. This initiative underscores the importance of backing open-source projects that foster the advancement of blockchain technology.
Bitwise’s Contribution to Open-Source Development through Ethereum Spot ETF Profits
Bitwise announced its decision to allocate a share of its profits, specifically 10%, from the Ethereum spot ETF, known as (ETHW), towards supporting open-source developers. This move marks Bitwise’s expansion, with the ETHW fund being the latest addition to its diverse range of 20 crypto products and eight publicly traded cryptocurrency funds. The management fee for ETHW is set at a modest 0.20%, with no fees applied on the first $500 million in assets for the initial six months of trading.
The ETHW fund will be trading on the New York Stock Exchange, leveraging reputable service providers including KPMG for auditing, Bank of New York Mellon for administration, and Coinbase Custody Trust Company for digital asset custody.
Following the fund’s launch, Bitwise has disclosed that 10% of all ETHW proceeds will be donated to two prominent organizations. The first recipient, Protocol Guild, supports over 170 essential contributors to Ethereum’s Layer 1 protocol research and development. The second beneficiary is the PBS Foundation, a nonprofit organization that funds open-source Ethereum block relays and related exploration.
Hong Kim, Bitwise’s Chief Technology Officer (CTO), emphasized the importance of supporting the community-driven open-source development of Ethereum to fuel its growth. The contribution program aims to facilitate the continuous expansion of Ethereum.
Additionally, Bitwise is committed to transparency by providing the Ethereum addresses of all ETHW holdings for public verification of the fund’s assets and transactions on the blockchain.
Impact of ETH Spot ETF Launch on Ethereum’s Value Projection
Reflecting on the effect of Bitcoin Spot Exchange-Traded Funds on Bitcoin’s price, Bitwise anticipates a similar trend for Ethereum post the ETH spot ETF launch.
Matt Hougan, Bitwise’s Chief Information Officer, drew parallels with the significant boost in capital inflow following the availability of Bitcoin ETFs, propelling Bitcoin to new record highs. With expectations of substantial investments flowing into Ethereum post ETF introduction, Hougan predicts that Ether’s value will surge to new peaks by the end of 2024.