The 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 supporting Bitcoin Core developers, many are questioning why more haven’t followed suit.
Bitwise’s co-founder and CTO, Hong Kim, emphasized the importance of reinvesting profits into the infrastructure of Bitcoin to strengthen the asset itself. Bitwise pledged to donate 10% of its ETF fee profits to nonprofits that fund Bitcoin Core developers for a decade. Similarly, VanEck promised to contribute 5% of its profits to Brink and made an initial $10,000 donation to the organization.
Both companies recognize the value in supporting the developers who maintain and update the Bitcoin protocol, as their financial products rely on the success and security of the underlying asset. As the cryptocurrency industry continues to evolve, the contributions from major financial institutions could play a crucial role in the development of Bitcoin and scaling solutions for the protocol.
The question now remains: which financial institution will be the next to follow Bitwise and VanEck’s lead in supporting Bitcoin Core developers? The impact of these donations could be significant in furthering the growth and innovation of the cryptocurrency ecosystem.
