The Bitwise Ether ETF, scheduled to be available on the NYSE on July 23, has pledged to donate 10% of its proceeds to the ETH open-source development community.
Bitwise Asset Management has declared a donation of 10% of ETHW’s profits to Ethereum development organizations in anticipation of the forthcoming launch of the Bitwise Ethereum ETF (ticker: ETHW), which is scheduled to commence trading on the New York Stock Exchange. This donation followed the United States Securities and Exchange Commission (SEC)’s approval of spot Ethereum ETF products for trading.
Bitwise Ether ETF has disclosed 10% profit donation
The Bitwise Ethereum ETF (ticker: Ethw) is poised to become a new listing on the New York Stock Exchange on July 23rd, as per a recent report from Bitwise Asset Management. Additionally, Bitwise has declared that it will contribute 10% of the profits from ETHW to developing the Ethereum open-source protocol.
This fund will directly expose Ethereum (ETH), the second-largest cryptocurrency by market capitalization. ETHW’s management fee is initially proposed to be 0. 20%. However, it will be waived for the first half year of the law’s implementation on the first $500 million of its assets.
The Ethereum development organizations will receive annual contributions for the next ten years, and the organizations that receive the donations will be evaluated annually.
Ethereum Open-Source Development Support
Bitwise intends to continue developing and advancing the Ethereum network in conjunction with introducing ETHW. The Protocol Guild and PBS Foundation, essential components of the Ethereum ecosystem, are the primary focus of the donation program. The Protocol Guild assists over 170 core contributors who are engaged in improving the Ethereum Layer 1 protocol. At the same time, the PBS Foundation supports funding open-source block relays of Ethereum and related research.
The importance of these contributions was underscored by Hong Kim, the Chief Technology Officer at Bitwise, who observed that
“Ethereum is an open-source technology that is supported by a community of open-source developers, and every investor in ETHW wants Ethereum to evolve. This is where the donation programme comes into play.”
Additionally, Bitwise will disclose all its Ether ETF holdings on Ethereum addresses.
ETHW’s launch follows the Bitwise Bitcoin ETF (BITB)’s approval and entry, which rapidly accumulated $2.7 billion in AUM. As a result, Bitwise CIO Matt Hougan emphasized the potential for ether ETPs to impact the market and propel ETH to new all-time highs by the conclusion of 2024.
He emphasized the distinct strengths and use cases of Bitcoin and Ethereum, asserting that Bitcoin functions as a monetary asset, whereas Ethereum powers “crypto’s killer apps” such as DeFi, NFTs, and stablecoins.
Ethereum (ETH) Price Trend
Nevertheless, the price of ETH has been in an adverse trend, fluctuating between an intra-day high of $3,560.08 and a low of $3,438.10, despite the approval of the Spot Ethereum ETF for trading. At the time of publication, the price of ETH was down 2.40% from the resistance level of $3,449.
ETH’s 24-hour trading volume increased by 36% to $18,576,969,558. Its market capitalization plummeted by 2.35% during the decline to $414,771,638,128. This increase in trading volume indicates the interest of investors, who are purchasing the decline in anticipation of a price recovery. Additionally, the sanction could increase the price to $5000, per a Coingape prediction.
