Bitwise will donate 10% of Ethereum ETF profits to developers

3 months ago 51

Ryan Daws is a senior editor at TechForge Media with over a decade of experience in crafting compelling narratives and making complex topics accessible. His articles and interviews with industry leaders have earned him recognition as a key influencer by organisations like Onalytica. Under his leadership, publications have been praised by analyst firms such as Forrester for their excellence and performance. Connect with him on X (@gadget_ry) or Mastodon (@gadgetry@techhub.social)

Bitwise Asset Management has announced the launch of its Bitwise Ethereum ETF (ticker: ETHW) on the New York Stock Exchange, marking a milestone in the US Web3 market. The spot Ethereum fund aims to provide investors with direct exposure to the second-largest Web3 ecosystem by market capitalisation.

To support the Ethereum ecosystem, Bitwise has pledged to donate 10% of all ETHW profits to two key organisations: Protocol Guild and PBS Foundation. These entities play crucial roles in supporting Ethereum’s core development and infrastructure.

Hong Kim, CTO of Bitwise, said: “Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers. Every investor in ETHW wants Ethereum to continue to advance, and this donation program contributes to that goal.”

The launch of ETHW comes on the heels of Bitwise’s successful Bitcoin ETF (BITB), which amassed $2.7 billion in assets under management within six months of its debut. Bitwise CIO Matt Hougan believes the introduction of spot Ethereum ETPs will further accelerate crypto investment.

“Bitcoin ETPs started a new ballgame for crypto; the launch of spot ether ETPs moves us to the second inning,” Hougan stated. “Making bitcoin available in an exchange-traded format brought more than $17 billion of new investment into crypto in a matter of months. We think this launch will extend that run with billions more and drive ETH to new all-time highs in 2024.”

ETHW boasts a competitive management fee of 0.20%, with the fee waived entirely for the first six months on the initial $500 million in assets. This approach aims to attract a wide range of investors seeking exposure to Ethereum’s potential.

Bitwise CEO Hunter Horsley emphasised the significance of this launch for retail investors: “Now with ETHW, millions of Americans can gain exposure to Ethereum through their financial advisor or the traditional brokerage and retirement accounts they rely on for their investing activities.”

The fund’s structure leverages experienced service providers, including Coinbase Custody Trust Company as digital asset custodian, Bank of New York Mellon as administrator, and KPMG as auditor. In a move towards transparency, Bitwise has committed to publishing the Ethereum addresses of all ETHW holdings, allowing investors to verify the fund’s assets directly on the blockchain.

Ethereum’s growing importance in the crypto ecosystem is evident in its adoption by major global brands such as Nike, Starbucks, Tiffany & Co, and JPMorgan. The blockchain has become the primary platform for stablecoins and decentralised finance (DeFi), with markets valued at approximately $150 billion each.

Bitwise’s launch of ETHW represents a significant step towards mainstream adoption of Ethereum investment products. By combining low fees with a commitment to supporting open-source development, Bitwise aims to attract both individual and institutional investors while contributing to the long-term growth of the Ethereum ecosystem.

Investors should note that ETHW, like other crypto-based exchange-traded products, is not registered under the Investment Company Act of 1940 (PDF) and does not fall under its regulations. As always, potential investors are advised to conduct thorough research and consider their risk tolerance before participating in cryptocurrency investments.

(Photo by Michael Förtsch)

Want to learn more about blockchain from industry leaders? Check out Blockchain Expo taking place in Amsterdam, California and London. The comprehensive event is co-located with other leading events including Digital Transformation Week, IoT Tech Expo, Edge Computing Expo, Intelligent Automation, AI & Big Data Expo, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

Tags: bitwise, blockchain, coding, crypto, development, etf, ethereum, ethw, open source, open-source, programming, web3