Bitwise Donates $150,000 to Bitcoin Open-Source Developers

Digital assets investment firm Bitwise has donated $150,000 to Bitcoin open-source developers. In an announcement on X, the firm stated that three Bitcoin non-profits—Brink, Open Sats, and Human Rights Foundation (HRF)—will allocate the funds.

This contribution fulfills the company’s pledge to donate 10% of the gross profits from its Bitwise Bitcoin exchange-traded funds (ETF) BITB annually. According to the firm, this is the first annual donation based on that commitment.

Bitwise stated:
> “Today, Bitwise is donating $150,000 to support Bitcoin open-source developers, who work tirelessly to secure and maintain the network.”

The firm expressed gratitude to the investors of its Bitcoin ETF product, highlighting that this donation was made possible because they selected BITB over other Bitcoin ETFs.

Bitwise BITB is among the top Bitcoin ETFs by assets, boasting $3.962 billion in assets under management (AUM). Though this amount is a fraction of BlackRock’s $56.53 billion in IBIT, the ETF is the fourth largest behind IBIT, Fidelity FBTC, and Ark 21Shares ARKB.

The firm noted that its contributions will grow as BITB attracts more investment, asserting, “Strive to do our part to be a good steward of this incredible ecosystem alongside you.”

Bitwise’s donations indicate it earned $1.5 million in gross profits from its Bitcoin ETF in 2024. This comes as no surprise given the firm’s low fee of 0.2%, comparatively lower than BlackRock’s and Fidelity’s 0.25% fees.

ETFs Boost Institutional Bitcoin Adoption

Bitcoin ETFs have significantly contributed to institutional Bitcoin adoption, according to recent data from SEC 13F filings. A 13F filing is submitted quarterly by institutional investment managers to disclose securities holdings that exceed $100 million.

Bitwise CIO Matt Hougan reported that the value of Bitcoin ETF holdings revealed through 13F filings reached $38.7 billion in Q4, tripling from $12.4 billion in Q3. Currently, professional investors hold 28% of the Bitcoin ETF assets, with a prediction of surpassing 40% by the end of 2025.

Bloomberg senior analyst Eric Balchunas highlighted that IBIT alone has 1,100 holders who filed 13Fs, indicating immense institutional adoption towards the year’s end.

The signs of increased ETF adoption are evident among retail holders too. Influential Bitcoin supporter Plan B shared that he transferred all his Bitcoin to ETFs for better management, stating:
> “Yes, I know, not your keys not your coins. But it is just easier for me to manage bitcoin the same way as equities and bonds. Also, not having to hassle with keys gives me peace of mind. I guess I am not a maxi anymore.”

Another avenue for institutional investors to gain exposure to Bitcoin is through MSTR stock. The number of 13F filings for MSTR has significantly increased since the company adopted a Bitcoin treasury strategy, reaching 1,051 in Q4 2024.

Analysts Predict Bitcoin Will See a Resurgence

Industry stakeholders believe that despite recent struggles, Bitcoin is likely to see an increase in value. Crypto analyst James Van Straten forecasts Bitcoin will reach new highs as financial conditions ease, emphasizing the importance of institutional adoption for Bitcoin’s future:
> “Bitcoin became even further entrenched into the financial system with the addition of ETFs and options.”

However, Van Straten does not foresee a major price spike in the immediate future, suggesting new highs may not happen until mid-March. Currently, BTC is trading at $95,000, having fallen 10% over the past month.