Revolutionary Bitcoin Development Funding Model: Bitwise Allocates 10% of BITB ETF Profits to Core Developers

Updated on:12/21/2025 04:31 PM

Leading cryptocurrency asset manager Bitwise has made a significant commitment to the future of Bitcoin by allocating 10% of all gross profits from its spot Bitcoin exchange-traded fund (ETF), BITB, to support Bitcoin open-source development. This groundbreaking initiative demonstrates how institutional investment products can directly contribute to the health and growth of the cryptocurrency ecosystem.

The initial contribution of $150,000 will be distributed among three distinguished nonprofit organizations that have demonstrated exceptional dedication to advancing Bitcoin technology: Brink, OpenSats, and the Human Rights Foundation (HRF). This funding model represents an innovative approach to bridging the gap between traditional finance and cryptocurrency development.

Revolutionizing Bitcoin Developer Support

"We believe that supporting the developers who maintain and improve Bitcoin's core infrastructure is not just philanthropic—it's essential for the long-term success of the ecosystem," stated Hunter Horsley, Bitwise CEO. "Our investors have enabled us to take this step, and we're proud to be channeling resources directly to those building the future of Bitcoin."

The BITB ETF, which features competitive 0.2% management fees, has attracted nearly $2.3 billion in net flows since its launch, making it the fourth-largest Bitcoin ETF in the United States by inflows. According to Arkham Intelligence data, Bitwise currently holds approximately 41,152 BTC, valued at roughly $3.9 billion as of press time.

Empowering Bitcoin Innovation

Each of the three recipient organizations plays a vital role in sustaining and enhancing Bitcoin's network security, functionality, and decentralization:

• Brink has supported 20 grantees worldwide and secured partnerships with industry leaders including Xapo, Coinbase, and Marathon Digital. The organization also offers a specialized fellowship program for developers committed to advancing the Bitcoin ecosystem.
• OpenSats recently concluded its ninth round of grants through its General Fund, focusing on Bitcoin and Bitcoin-adjacent software projects while improving existing open-source solutions.
• The Human Rights Foundation (HRF), established in 2005, has channeled over $5.5 million through 174 separate grants via its Bitcoin Development Fund since 2018, demonstrating a long-term commitment to supporting Bitcoin innovation globally.

This initiative highlights the growing recognition that Bitcoin's long-term success depends on robust developer support and sustainable funding mechanisms. As institutional adoption of cryptocurrency products continues to accelerate, innovative approaches like Bitwise's profit-sharing model may become increasingly influential in shaping the future of blockchain development.