Bitwise Donates 10% Ethereum ETF Profits to Developer Community

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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 follows the success of Bitwise’s Bitcoin ETF (BITB), which gathered $2.7 billion in assets under management within its first six months. Bitwise CIO Matt Hougan believes that spot Ethereum ETPs will further boost crypto investment.

“Bitcoin ETPs marked a new era for crypto; the introduction of spot ether ETPs transitions us to the next phase,” Hougan commented. “Offering bitcoin in an exchange-traded format brought over $17 billion in new investments into crypto within months. We anticipate this launch will add billions more and propel ETH to new all-time highs in 2024.”

ETHW offers a competitive management fee of 0.20%, with the fee completely waived for the first six months on the initial $500 million in assets. This strategy aims to attract a diverse group of investors interested in Ethereum’s potential.

Bitwise CEO Hunter Horsley highlighted the importance of this launch for retail investors: “With ETHW, millions of Americans can now gain exposure to Ethereum through their financial advisor or the traditional brokerage and retirement accounts they use for their investment 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)

See also: Sam Altman’s blockchain project ‘World Chain’ opens to developers

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