Bitwise funds the Bitcoin ecosystem through ETF profits, donating a total of $380,000 over two years.

Crypto asset management firm Bitwise announced its second annual donation on Wednesday, amounting to $233,000, in addition to the first donation of $150,000 announced in February 2025. Since the Bitcoin ETF launched in January 2024, it has donated over $383,000 to open-source Bitcoin developers. The funds come from 10% of the gross profit from BITB management fees.

BITB Profit Donation Mechanism: 10% Gross Profit Directly Supports Open Source Ecosystem

Bitwise committed before and after the listing of BITB to invest 10% of its annual ETF gross profit into Bitcoin open-source development long-term. Based on this mechanism, the $233,000 donation corresponds to approximately $2.33 million in gross profit generated during BITB’s second full year of operation.

Bitwise’s profit model involves charging a 0.2% annual management fee on BITB. As Bitcoin prices rise and ETF capital inflows increase, BITB’s management fee revenue base continues to expand, creating a structural logic for donations to grow in tandem with the ETF’s scale.

Bitwise posted on X platform: “Bitwise is honored to donate $233,000 to support the unsung heroes maintaining and protecting the Bitcoin network. As BITB continues to grow, our contributions are also increasing.”

Three Major Beneficiary Organizations: Distinct Funding Allocation Frameworks

The donation is autonomously allocated by three representative non-profit organizations in the Bitcoin open-source ecosystem:

Bitcoin Brink: Focuses on funding core Bitcoin protocol developers worldwide, providing research grants and long-term development support to ensure ongoing maintenance and security enhancement of Bitcoin’s underlying code.

OpenSats: An open-source support foundation funding Bitcoin and Lightning Network-related software development, including core development, privacy tools, and decentralized infrastructure projects.

Human Rights Foundation (HRF) Bitcoin Development Fund: Focuses on promoting Bitcoin’s technical applications under authoritarian regimes, funding open-source tools and educational programs that enhance financial freedom.

Bitwise states that these three organizations will decide the specific allocation of funds independently to ensure resources flow most efficiently to the most needed contributors.

BITB Market Position: $2.2 Billion Inflows, Third Largest US Bitcoin ETF

According to data from Farside Investors, since its launch in January 2024, BITB has accumulated $2.2 billion in inflows, ranking third among US Bitcoin spot ETFs, behind BlackRock’s iShares Bitcoin Trust (IBIT, $62.4 billion) and Fidelity’s Wise Origin Bitcoin Fund (FBTC, $11 billion).

Despite a market correction early in 2026 and a decline in Bitcoin ETF inflows, BITB experienced a slight increase in the first nine weeks of this year, rising from $2.17 billion to $2.21 billion, demonstrating relative resilience amid market headwinds.

Frequently Asked Questions

How does Bitwise’s BITB donation mechanism work?

Bitwise commits to donating 10% of BITB’s annual gross profit to Bitcoin open-source developers. BITB charges investors a 0.2% annual management fee, and 10% of the resulting gross profit is allocated by three organizations—Bitcoin Brink, OpenSats, and the Human Rights Foundation—to individual developers and specific projects.

How much has Bitwise donated since 2024?

As of March 2026, Bitwise has donated a total of $383,000, including the initial $150,000 announced in February 2025 and the latest $233,000 donation, which corresponds to approximately $2.33 million in gross profit during BITB’s second full year.

What is BITB’s position in the US Bitcoin spot ETF market?

BITB has accumulated $2.2 billion in inflows, ranking third among US Bitcoin spot ETFs. BlackRock’s IBIT leads with $62.4 billion, followed by Fidelity’s FBTC with $11 billion. During the market correction early 2026, BITB maintained slight growth.