The recent decision by Bitwise and VanEck to donate a percentage of their profits from spot Bitcoin ETFs to open-source Bitcoin development has sparked a conversation within the cryptocurrency community. With only two out of the 11 financial institutions that issued spot Bitcoin ETFs in January 2024 committing to support Bitcoin Core developers, many are questioning why more haven’t followed suit.
Bitwise and VanEck’s decision to donate to developers who maintain and update the Bitcoin protocol is seen as a self-investment into making the asset itself stronger. Hong Kim, co-founder and CTO of Bitwise, emphasized the importance of reinvesting profits into the underlying infrastructure of Bitcoin to ensure its continued success.
Bitwise has pledged to donate 10% of its ETF fee profits to three different nonprofits that fund Bitcoin Core developers, while VanEck has committed to contributing 5% of its profits to Brink and made an initial $10,000 donation to the organization.
The support from these major financial institutions is crucial for the development of Bitcoin and open-source scaling solutions for the protocol. As more spot Bitcoin ETF issuers recognize the value in giving back to the developers who support the underlying asset, the hope is that others will follow Bitwise and VanEck’s lead in supporting the ongoing growth and innovation of Bitcoin.
