Bitwise and VanEck will allocate portion of profits from spot BTC ETFs to developments on the Bitcoin network
The companies’ products will begin trading on the NYSE and CBOE stock exchanges, respectively
11.01.2024 - 13:19
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What’s new? Investment companies Bitwise and VanEck will start allocating a portion of profits from managing spot bitcoin exchange-traded funds (ETFs) to the development of open-source projects on the Bitcoin network. The companies’ products had previously received approval from the US Securities and Exchange Commission (SEC). Bitwise’s product with the ticker BITB is launched on the NYSE Arca stock exchange, VanEck’s fund under the ticker HODL is added to the CBOE listing.
What else is known? Bitwise will allocate 10% of the profits for managing the ETFs to non-profit organizations Brink, OpenSats, and Human Rights Foundation, which will in turn handle their distribution to development teams. “Bitcoin is important to the future,” the investment firm said.
The non-profit organizations will receive funding with no additional conditions each year for “at least the next 10 years.”
Bitwise noted that bitcoin’s launch 15 years ago took place without raising funds from investors, and the network is now supported by a dedicated community of “unsung heroes” developers improving its security, scalability, and usability. In doing so, all bitcoin investors benefit from their work.
“With the recurring donation, BITB creates a strong alignment between bitcoin investors and the strength of the underlying open-source infrastructure,” Bitwise noted.
In turn, VanEck will allocate 5% of its profits for managing the fund to Brink. VanEck CEO Jan van Eck emphasized that the company has been advocating for the approval of a bitcoin ETF since 2017, as the asset itself, as well as the blockchain technology, are public goods. He also thanked anonymous bitcoin creator Satoshi Nakamoto “for launching the most important financial freedom technology of the internet age.”
Bitwise has been trying to launch a spot BTC ETF since 2019, and VanEck first filed in 2021.
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