As excitement for the launch of the long-awaited ethereum Spot Exchange Traded Funds (ETFs) Asset management firm Bitwise, in a groundbreaking move for the cryptocurrency industry, is set to donate a portion of its profits from its eth spot ETF to ethereum open-source developers. This move by Bitwise demonstrates the broader understanding of the value of supporting open-source initiatives that foster and develop blockchain technology.
Bitwise ethereum Spot ETF Proceeds Go to Open Source Developers
Asset management company Bitwise ethereum-ETF-ETHW-Set-To-Launch-on-the-NYSE-Firm-Announces-Donation-to-ethereum-Developers-Will-Publish-Blockchain-Addresses-To-Showcase-Transparency” target=”_blank” rel=”noopener nofollow”>revealed its plans to support open source developers with part of the proceeds, notably 10% of its ethereum spot ETF under the ticker (ETHW) on Monday evening.
Notably, Bitwise’s ETHW fund is the latest addition to a broad range of 20 crypto products and the firm’s eight publicly traded cryptocurrency funds. ETHW has a 0.20% financial management fee. However, on the first $500 million in assets, the fee is set at 0% for the first six months.
The fund will be traded on the New York Stock Exchange and will utilize experienced service providers including KPMG as auditors, Bank of New York Mellon as administrators, and Coinbase Custody Trust Company as digital asset custodians.
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Following the launch of the fund, Bitwise stated that two major companies would receive a 10% donation of all ETHW profits, along with the introduction of the product. The first organization mentioned by Bitwise is Protocol Guild, a community funding platform that supports over 170 key contributors to the research and development of the ethereum Layer 1 protocol. Second is the PBS Foundation, a non-profit organization that provides funding for open-source ethereum block relays and related research.
Hong Kim, Chief technology Officer (CTO) of Bit by bit He stated that a group of enthusiastic open-source developers currently manage ethereum as an open-source technology. Therefore, the goal of every investment in ETHW is for eth to continue to expand, and this donation program will help achieve this goal.
Furthermore, the firm has highlighted its intention to promote transparency by making eth addresses of all ETHW holdings available, as it will allow any investor to confirm the fund's holdings and transactions directly on the blockchain.
eth spot ETFs launched to boost Ether value to a new all-time high
Given the impact of the bitcoin Spot Exchange Traded Funds Following the price surge in bitcoin, Bitwise is confident that the same will happen with the value of ethereum following the introduction of eth spot ETFs.
According to the company's CIO Matt Hougan, after bitcoin was made available through an ETF version, over $17 billion in new capital entered the crypto space in just a few months, pushing btc to a new peak. Thus, with Ethnicity By attracting such a significant inflow and potentially more following the launch of its spot ETF, Hougan expects the crypto asset to hit new all-time highs before the close of 2024.
Featured image from Medium, chart from Tradingview.com
