In a move that highlights their dedication to the growth and improvement of the Bitcoin network, Bitwise Asset Management, a prominent crypto fund manager, has announced that it will donate 10% of profits from its Bitwise Bitcoin ETF (BITB) to support Bitcoin open-source development. This initiative reflects Bitwise’s long-term commitment to investing in the infrastructure and innovation of the cryptocurrency space. The funds will be donated annually for the next ten years to three reputable non-profit organizations – Brink, OpenSats, and the Human Rights Foundation’s Bitcoin Development Fund.
Fostering Innovation and Collaboration:
Bitwise’s CEO, Hunter Horsley, underlined the purpose behind these donations: to provide consistent funding for open-source developers who contribute to improving the Bitcoin network. By offering this support with no strings attached, Bitwise aims to foster collaboration and incentivize developers to continue their valuable work. The recipient organizations were chosen based on their strong track records and unwavering commitment to funding open-source development.
Setting a Precedent:
The industry has responded with overwhelming praise for Bitwise’s groundbreaking initiative. Matt Odell, co-founder of OpenSats, hailed the company for setting a precedent for supporting open-source contributors. The commitment by Bitwise to donate 10% of profits has even surpassed that of another notable issuer, VanEck, who pledged to donate their profits to Brink.
Legal Challenges and Potential Implications:
Meanwhile, Celsius, a former crypto platform, is demanding that former clients who withdrew substantial amounts prior to its bankruptcy declaration repay a portion of the funds or face potential litigation. It remains to be seen whether this move will hold up in court or be enforceable, as it represents an unprecedented attempt to recoup funds from private investors. However, should Celsius succeed, other bankrupt platforms may be inclined to follow suit.
Bitcoin Price Analysis:
Despite the recent approval of a spot ETF by the SEC, the price of Bitcoin has struggled to break through key resistance levels at $47,800 and $48,000. Although there has been a minor decline, the price remains above the $45,600 support level and the 100 hourly Simple Moving Average. If the bears continue to protect the $48,000 resistance, a fresh decline in price could be anticipated. However, a close above $48,000 could lead to further gains, with the next major resistance at $49,250. Conversely, if the price fails to rise above $47,350, a decline towards the $45,150 support level may be observed.
Bitwise Asset Management’s commitment to donating a significant portion of profits to support Bitcoin open-source development demonstrates the company’s long-term dedication to advancing the cryptocurrency industry. By providing consistent funding to reputable non-profit organizations, Bitwise aims to incentivize and reward open-source developers for their contribution to the growth and innovation of the Bitcoin network. As the industry continues to evolve, it is essential for market participants to embrace collaborative efforts that drive progress and elevate the potential of blockchain technology.