Spot Bitcoin ETF Issuer Bitwise Pledges 10% of Profits To Fund Open-Source BTC Development

Today, Bitwise Asset Management unveiled a new initiative, confirming their pledge to allocate 10% of profits from the Bitwise Bitcoin ETF (BITB) towards supporting Bitcoin open-source development, according to a press release sent to Bitcoin Magazine. 

The donations will benefit three esteemed non-profit organizations - Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund.

“Bitcoin was launched 15 years ago without a fundraise and has always been maintained by a dedicated community of open source developers,” said Bitwise CEO Hunter Horsley. “We’re excited for the Bitwise Bitcoin ETF (ticker: BITB) 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, to be made annually for the next decade, come without any strings attached, reinforcing Bitwise's long-term dedication to fostering sustainable support for Bitcoin Core Development. 

“It is important to support Bitcoin Core Development in a long-term sustainable way,” said Mike Schmidt, the executive director of Brink. “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.”

The recipient organizations were carefully chosen based on their established track record and commitment to funding Bitcoin open-source development, subject to annual review for continued alignment with Bitwise's mission, according to the release.

Acknowledging Bitwise's proactive stance, Matt Odell, cofounder of OpenSats, lauded the company for setting a precedent in supporting open-source contributors vital to the Bitcoin 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."

This commitment to donating 10% of spot Bitcoin ETF profits doubles what another issuer, VanEck, pledged to donate last Friday. VanEck will also be donating their profits to Brink.

“Bitcoin is a critical piece of freedom technology serving financially oppressed people around the world today,” said Alex Gladstein, the chief strategy officer of the Human Rights Foundation. “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.”

For more details on BITB and the donation program, interested parties can visit their website here, heralding a new era of sustained support for Bitcoin's foundational development.