- Bitwise has declared its intention to donate 10% of profits from Bitwise Bitcoin ETFs to support the ongoing development of the Bitcoin network.
- Bitcoin experienced a modest ascent to $47,000 after the U.S. SEC approved ETFs tied to the cryptocurrency, while altcoins registered a strong rally.
Bitwise, a leading asset management firm, has announced its commitment to allocating 10% of profits generated from Bitwise Bitcoin ETFs to support the ongoing development of the Bitcoin network. This move underscores the company’s recognition of the pivotal role played by a dedicated community of open-source developers who tirelessly contribute to enhancing the security, scalability, and usability of Bitcoin, an initiative that began 15 years ago without a traditional fundraising process.
Bitwise will donate 10% of the profits of the Bitwise Bitcoin ETF (ticker: BITB) to bitcoin open-source development.
Recipient orgs:
– @BitcoinBrink
– @OpenSats
– @HRFBitcoin is important to the future. We're excited for $BITB to support its foundation 👇 pic.twitter.com/JMzd4bMOB9
— Bitwise (@BitwiseInvest) January 10, 2024
In a strategic effort to create a strong connection between BITB investors and the robustness of the underlying open-source infrastructure, Bitwise has carefully chosen reputable non-profit organizations as recipients for these recurring donations. Thus, the selected organizations, including Bitcoin Brink, OpenSats, and HRF, will receive contributions annually, and the donations come with no specific conditions attached, ensuring flexibility and support for the ongoing development of Bitcoin.
Having initially filed for a spot Bitcoin ETF five years ago, Bitwise sees this announcement as a significant milestone, positioning BITB as the preferred ETF for the ever-evolving cryptocurrency landscape. The company also expresses gratitude to the diverse contributors within the Bitcoin community, encompassing developers, researchers, builders, educators, investors, and enthusiasts, recognizing their collective efforts in positively impacting the world through Bitcoin.
This philanthropic move aligns with a growing trend in the industry, as VanEck recently declared its commitment to donating 5% of ETF profits to support Bitcoin development. Thus, it highlights a broader acknowledgment of the importance of sustaining the open-source ecosystem for the future growth and success of the cryptocurrency space.
Bitcoin holds Gains, Altcoins Rally
Bitcoin experienced a modest ascent, briefly reaching $47,000, following the approval by the U.S. Securities and Exchange Commission (SEC) of exchange-traded funds (ETFs) directly tied to the cryptocurrency. Furthermore, traders are keenly observing the market to gauge the reception and financial impact of these newly approved ETF products.
The dominant cryptocurrency was trading at $46,632, reflecting a 1.5% increase. Over the past year, Bitcoin has surged by 166%, driven by both the anticipation of ETF approval and expectations of more accommodative monetary policies.
Market analysts had speculated about the potential for a market pullback once the SEC granted approval for spot ETFs, with traders possibly capitalizing on profits accumulated during the prolonged upward trajectory of the cryptocurrency.
The approval of ETFs had been anticipated and factored into market expectations. Consequently, the focus has shifted to monitoring the inflows into these ETFs as a key indicator of market sentiment, according to Caroline Mauron, co-founder of Orbit Markets, a digital-asset derivatives liquidity provider.
On the other hand, altcoins made a strong rally earlier today. The Ethereum (ETH) price gained a staggering 10% shooting past $2600 levels.
With the realization of the Bitcoin ETF speculation, it appears that traders are pivoting towards Ether (ETH) in anticipation of the next narrative – the potential approval of an ETH ETF. This shift is due to the perception that ETH is currently available at a discount in comparison to other tokens. The US Securities and Exchange Commission (SEC) is likely to make decisions on applications for spot ETH ETFs, with the review process expected to commence in May.
