Bitwise Ethereum ETF Debuts on NYSE with 10% of the Profits Going to Donation Program

• Bitwise’s ETHW ETF launches July 23rd, donating 10% of profits to Ethereum development for the next ten years.
• ETHW offers direct exposure to Ethereum, with a 0.20% management fee waived for the first $500M in assets.
• Bitwise ensures transparency by disclosing all ETHW holdings on Ethereum addresses, fostering investor trust.

The Bitwise Ethereum ETF (ETHW) has debuted on the New York Stock Exchange, according to a statement issued by Bitwise Asset Management. The launch date is July 23rd, pending SEC approval of spot Ethereum ETF products. This action contributes to Ethereum’s increasing market share.

Commitment to Ethereum Development

Bitwise plans to donate 10% of ETHW’s profits to Ethereum development organizations. This donation aims to support the open-source community driving Ethereum’s growth. The annual contributions will continue for the next ten years, with organizations reviewed annually.

Hong Kim, Bitwise’s CTO, emphasized the importance of this initiative. He stated, “Ethereum is an open-source technology supported by a community of developers. Every investor in ETHW wants Ethereum to evolve.” 

The donation program focuses on the Protocol Guild and PBS Foundation. Protocol Guild supports over 170 core contributors to Ethereum’s Layer 1 protocol, while PBS Foundation funds open-source block relays and related research.

Investor Benefits and Transparency

Direct exposure to Ethereum, the second-largest cryptocurrency by market capitalization, will be provided by the Bitwise Ethereum ETF. Although the initial $500 million in assets will not be charged this cost for the first six months, the fund has a 0.20% management charge. This deliberate approach aims to boost market trust and attract early investment.

With Bitwise’s transparency initiative, all ETHW holdings on Ethereum addresses will be made public. Investor trust is increased by this transparency, which is consistent with the open nature of blockchain technology. The Bitwise Bitcoin ETF (BITB), made a successful debut and swiftly accumulated $2.7 billion in assets under management (AUM), before the launch of ETHW.

Bitwise’s CIO, Matt Hougan, highlighted the potential impact of Ethereum ETPs on the market. He observed that Ethereum powers stablecoins, NFTs, and DeFi instead of Bitcoin. These applications have the potential to push Ethereum to new all-time highs by the end of 2024.