Of the 11 financial institutions that launched spot Bitcoin ETFs in January 2024, only a handful have pledged to donate a percentage of their profits to open-source Bitcoin development. This raises questions about the industry’s commitment to investing in the infrastructure that sustains the cryptocurrency market.

Hong Kim, co-founder and Chief Technology Officer of Bitwise, emphasized the importance of reinvesting profits into the underlying infrastructure of Bitcoin. He stated, “While we use the language of ‘donation,’ in reality, it’s closer to a self-investment into making the asset itself stronger.” Bitwise has committed to donating 10% of its ETF fee profits to three nonprofits that fund Bitcoin Core developers over a 10-year period.

Similarly, VanEck, another prominent issuer of spot Bitcoin ETFs, recognizes the value of supporting Bitcoin Core developers. Matthew Sigel, Head of Digital Asset Research at VanEck, highlighted their belief that traditional finance (TradFi) stands to gain from the efforts of Bitcoin’s Core contributors. VanEck has pledged to contribute 5% of its ETF profits to support Bitcoin developers and made an initial donation to the nonprofit organization Brink.

This move toward supporting Bitcoin Core developers is seen as crucial for the long-term sustainability and growth of the cryptocurrency market. By investing in the development of the underlying technology, these financial institutions are not only enhancing the security and functionality of Bitcoin but also positioning themselves as responsible stakeholders within the industry.

Amidst the surge of interest in Bitcoin exchange-traded funds (ETFs), two key players have distinguished themselves by their commitment to giving back to the community: Bitwise and VanEck. While many investors are drawn to Bitcoin for its potential financial gains, these institutions recognize the importance of investing in the technology itself.

Bitwise, known for its Bitwise Bitcoin ETF (BITB), has pledged to donate 10% of its ETF fee profits to three prominent nonprofits that fund Bitcoin Core developers: OpenSats, Brink, and the Human Rights Foundation (HRF). This long-term commitment demonstrates Bitwise’s dedication to strengthening the infrastructure that supports Bitcoin’s decentralized network.

Hong Kim, co-founder and CTO of Bitwise, emphasizes the significance of these donations, stating, “Supporting Bitcoin Core developers is not just a donation; it’s an investment in the asset itself. By reinvesting profits into the underlying infrastructure, we contribute to the long-term viability of Bitcoin

However, the question remains: which spot Bitcoin ETF issuer will be the next to join Bitwise and VanEck in supporting Bitcoin Core developers? As the industry continues to evolve, investors and stakeholders are eagerly awaiting news of further commitments to fund the development of the Bitcoin protocol.

The decision to support Bitcoin Core developers is not only a strategic investment but also a recognition of the integral role they play in maintaining the integrity of the Bitcoin network. By contributing to these efforts, financial institutions can help ensure the continued success and viability of Bitcoin as a digital asset.

As the cryptocurrency market continues to attract mainstream attention and investment, the role of spot Bitcoin ETF issuers in supporting Bitcoin Core developers is likely to become increasingly important. By prioritizing investment in the underlying infrastructure of Bitcoin, these companies are not only safeguarding their own interests but also contributing to the overall strength and resilience of the cryptocurrency ecosystem.