Bitwise donates R$ 1.3 million in Bitcoin ETF profits to open source developers

Bitwise announced on Wednesday (4) donated US$ 233,000 (approximately R$ 1.3 million) to three non-profit organizations: Brink, OpenSats and Bitcoin Development Fund by Human Rights Foundation.

When it launched its Bitcoin spot ETF in January 2024, Bitwise made a public promise: earmark 10% of BITB's annual gross profits for funding Bitcoin open source developers, and this recent payment is part of the fulfillment of that promise.

The previous year, the donation amounted to US$ 150 thousand. O 55% growth reflects the growing performance of the fund itself, which today has more than US$ 2.7 billion under management. The higher the BITB, the higher the contribution - the 10% rule ensures this mechanically.

Who gets paid and why

Before it was a digital currency, Bitcoin is an open source protocol. No company owns it, and therefore no one is obliged to maintain it.

The developers who review the code, identify vulnerabilities, debate changes and ensure that the network remains secure do so largely without guaranteed remuneration. It's high-level technical work, structurally underfunded in relation to the size of the industry that has grown up on BTC.

The three organizations chosen to receive Bitwise's donation are some of the organizations that exist to change this:

BrinkBitcoin Core: focused exclusively on education and funding for Bitcoin Core contributors.
OpenSats: distributes funds to dozens of open source projects linked to Bitcoin and the Lightning Network.
HRF's Bitcoin Development Fund: focuses on ensuring that developers in countries with authoritarian regimes can also contribute to the protocol.

It's worth noting that other organizations are also key to funding developers who dedicate themselves fully or part-time to maintaining and improving Bitcoin. Spiral, Chaincode Labs, MIT Digital Currency Initiative, and even a Brazilian woman called Twentyum are important in this regard, as are others.

The 10% logic

The most important detail isn't the amount, it's the rule. From the outset, Bitwise committed to passing on 10% of BITB's gross profits. This transforms the contribution from a sporadic voluntary gesture into a structural policy: the growth of the fund automatically finances the ecosystem that supports it.

It's straightforward logic. Bitcoin ETFs only exist because there is a Bitcoin that works. And Bitcoin works because there are people working on it. Financing these developers represents infrastructure maintenance, although it benefits other companies and individuals in the same sector.

Bearing this in mind, Bitwise is not acting disinterestedly. It profits from Bitcoin and has a direct interest in keeping it safe and developing. But that doesn't diminish the gesture, on the contrary. What makes the initiative interesting is precisely that it is structural, transparent and predictable. And it could be a standard to copy.