Bitwise and VanEck support Bitcoin development
As of January 2024, of 11 financial institutions offering spot Bitcoin ETFs, only Bitwise and VanEck have committed to financially supporting Bitcoin development. They have decided to donate a portion of their ETF profits to Bitcoin's open-source development, with Bitwise donating 10% of profits from its Bitwise Bitcoin ETF (BITB) to OpenSats, Brink, and the Human Rights Foundation (HRF) for ten years, and VanEck giving 5% of profits from its VanEck Bitcoin Trust (HODL) to Brink, including an initial donation of $10,000.
Reinvestment in the Bitcoin infrastructure
Executives from both companies argue that supporting the developers who maintain and update the Bitcoin protocol is essentially a reinvestment in the cryptocurrency's infrastructure that strengthens the asset on which their financial products are based. They recognize that traditional financial institutions (TradFi) benefit from the work of these innovators and believe that other institutions should also contribute similarly to Bitcoin's sustainability.
Call for support for crypto infrastructure
The call to action suggests that more spot Bitcoin ETF providers donating even a small portion of their profits could significantly support the ongoing development and scaling of Bitcoin infrastructure.
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