Asset management giant Bitwise is planning to donate some of its Ethereum (ETH) exchange-traded fund (ETF) profits to the network’s developers.
With the Bitwise Ethereum ETF (ETHW) trading on the New York Stock Exchange starting Tuesday, the company is committing to donate 10% of profits earned to benefit the ETH ecosystem.
“ETHW profits will be donated to two organizations: Protocol Guild, a grassroots funding organization that supports more than 170 core contributors to Ethereum layer-1 protocol research and development, and PBS Foundation, a non-profit that funds open-source Ethereum block relays and surrounding research.”
Bitwise’s Chief Technology Officer Hong Kim says that the financial commitment will help increase Ethereum innovation.
“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.”
When it comes to investing, Bitwise CIO Matt Hougan says there are key differences between Ethereum and Bitcoin (BTC).
“Whereas Bitcoin is a monetary asset with a role similar to alternatives, ETH plays more like a high-growth tech stock. By powering crypto’s ‘killer apps’ like DeFi (decentralized finance), NFTs (non-fungible tokens), and stablecoins, ETH provides exposure to the most disruptive capabilities of blockchains. We’re excited to offer ETHW as a way for investors to gain greater access to crypto’s potential.”
Ethereum is trading for $3,473 at time of writing, down slightly in the last 24 hours. Meanwhile, ETHW is trading for $24.93 at time of writing, down slightly on the day.
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