Bitwise Allocates $233,000 From Bitcoin ETF Profits to Developer Support
Crypto asset manager Bitwise has announced its second annual donation from the profits of its spot Bitcoin ETF, directing $233,000 to organizations that support the development and security of the Bitcoin network. This contribution brings its total donations to Bitcoin developers since 2024 to $383,000.
The donation is funded by 10% of the gross profits from the Bitwise Bitcoin ETF (BITB), a commitment the firm made around the product’s launch in January 2024. The first payout, made in February 2025 after BITB’s inaugural full year, was $150,000. The latest sum suggests Bitwise generated approximately $2.33 million in gross profits from the fund in its second year.
“Bitwise is proud to donate $233,000 to support the unsung heroes maintaining and securing the Bitcoin network,” the company stated in a post on X. “As $BITB continues to grow, so too does our contribution. Bitcoin is changing the world, and Bitwise will always strive to do our part to be a good steward of this incredible ecosystem.”
Allocation Trusted to Bitcoin-Focused Non-Profits
Bitwise has entrusted three established, Bitcoin-centric non-profit organizations to determine how the funds are allocated. These are:
- Bitcoin Brink: A non-profit focused on funding Bitcoin protocol development.
- OpenSats: A foundation that provides grants for free and open-source software projects related to Bitcoin and the Lightning Network.
- The Human Rights Foundation (HRF): Which will allocate the funds through its dedicated Bitcoin Development Fund, supporting developers working on privacy, censorship resistance, and other human-rights-focused Bitcoin infrastructure.
This delegation ensures the donation is distributed based on technical merit and ecosystem need by entities with deep expertise in the field.
BITB’s Market Position Amid Shifting ETF Flows
The donation amount is derived from BITB’s fee structure. Bitwise charges a 0.2% expense ratio on assets under management (AUM). With the second-year donation implying $2.33 million in gross profits, BITB’s AUM for that period can be estimated at roughly $1.165 billion (0.2% of AUM = gross profit).
Despite a challenging start to 2025 for many Bitcoin ETFs, BITB has demonstrated relative resilience. According to data from Farside Investors, BITB has seen total net inflows of $2.2 billion since its launch in January 2024. This ranks it third among U.S. spot Bitcoin ETFs, behind BlackRock’s iShares Bitcoin Trust (IBIT) with $62.4 billion in inflows and the Fidelity Wise Origin Bitcoin Fund (FBTC) with $11 billion.
While IBIT and FBTC have significantly larger inflows, BITB’s inflows have been steadier in recent weeks. Data shows BITB’s net inflows increased marginally from $2.17 billion to $2.21 billion over the first nine weeks of 2025, a period when many competitors saw net outflows amid a broader crypto market pullback.
Source: Farside Investors
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
