Bitwise Asset Management has pledged to donate 10% of profits from the Bitwise Bitcoin ETF to non-profits supporting the open-source development of BTC.
The donations from Bitwise will primarily benefit three non-profit organizations: Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund.
Bitwise Pledges To Donate Portion Of Profits
Bitwise CEO Hunter Horsley announced the decision in a press release published on the Bitwise website. Horsley stated he was looking forward to being able to fund and support Bitcoin core developers, especially those who had been around since the cryptocurrency’s inception, calling them the “unsung heroes” of Bitcoin. The Bitwise CEO stated,
“Bitcoin was launched 15 years ago without a fundraise and has always been maintained by a dedicated community of open source developers. We’re excited for the Bitwise Bitcoin ETF to provide a source of recurring funding for those unsung heroes who work tirelessly to improve the Bitcoin network’s security, scalability, and usability every day.”
The donations will be made annually for the next decade and come without any strings attached. This reinforces the firm’s long-term dedication to fostering a sustainable report for Bitcoin Core Development. Mike Schmidt, the executive director of Brink, stated,
“It is important to support Bitcoin Core Development in a long-term sustainable way. Bitwise’s decade-long pledge is a win-win-win with Bitwise profits leading to developer funding leading to improvements to the open source software underpinning the industry.”
A Positive Stance
The organizations were chosen based on their track record and commitment to funding the open-source development of Bitcoin. They will be subject to an annual review for their continued alignment with Bitwise’s mission of supporting the open-source development of Bitcoin. Acknowledging Bitwise’s proactive stance, the founder of OpenStats, Matt Odell, praised the company for setting a precedent in supporting contributors crucial to Bitcoin’s ecosystem.
“It is great to see large institutions supporting the open-source contributors who make this ecosystem possible. Bitwise is leading by example for all Bitcoin ETF issuers going forward.”
Alex Gladstein, the Chief Strategy Officer of the Human Rights Foundation, stated,
“Bitcoin is a critical piece of freedom technology serving financially oppressed people around the world today. We started the Bitcoin Development Fund to support the developers who make this all possible, and we’re delighted that Bitwise is committed to supporting this important cause.”
The VanEck Donation
Bitwise’s pledge to donate 10% of profits raised from the spot Bitcoin ETF is double what was offered by VanEck. Last week, VanEck pledged to donate 5% of its ETF profits to Brink if it gets approval. The firm has already begun the initiative by donating $10,000 to Brink. VanEck’s announcement highlights its commitment to nurturing and fortifying the fundamental infrastructure of Bitcoin.
“We’re not Bitcoin tourists at VanEck. We’re in it for the long haul. “That’s why we made an initial $10k donation and signed a pledge to donate 5% of our Bitcoin ETF profits (if approved) to support Bitcoin Core devs @bitcoinbrink for at least 10 years. Your tireless dedication to decentralization and innovation is the cornerstone of the Bitcoin ecosystem, and we’re here to support it—more details to come.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/01/bitwise-pledges-10-of-bitcoin-etf-profits-to-support-industry