Bitwise To Donate 10% of Profits of the Bitwise Ethereum ETF (ETHW) to Ethereum Open-Source Development

Bitwise Asset Management announced today that the company will donate 10% of profits of the Bitwise Ethereum ETF (ticker: ETHW) to two organizations: Protocol Guild, a grassroots funding organization that supports more than 170 core contributors to Ethereum’s protocol research and development, and PBS Foundation, a nonprofit that supports the research, development, and maintenance of open-source Ethereum infrastructure.

“Ethereum, as an open-source technology, is maintained by a dedicated community of open-source developers,” said Hong Kim, Bitwise’s Chief Technology Officer. “We’re excited for the Bitwise Ethereum ETF to provide an additional source of funding for those unsung heroes who work tirelessly to improve the Ethereum network’s security, scalability, and usability every day.”

The donations have no strings attached and will be made annually for at least the next 10 years.

"The Ethereum commons relies on open-source contributions from individuals around the world. Bitwise's support for Protocol Guild members is a wonderful example of the ecosystem giving back to fund this essential stewardship," said Trent Van Epps, Protocol Guild member.

“Open-source public infrastructure such as block relays play a critical role in maintaining Ethereum’s decentralization. We’re grateful to Bitwise for highlighting and supporting this important cause,” said Eugene Leventhal, PBS Foundation Grant Lead.

For more information on ETHW and the donation program, visit www.ethwetf.com.

ETHW is not suitable for all investors. An investment in ETHW is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment. ETHW is not an investment company registered under the Investment Company Act of 1940 (the "1940 Act") and therefore is not subject to regulation under the 1940 Act, unlike most mutual funds or ETFs.

Risks and Important Information

This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit ethwetf.com/prospectus.

The Bitwise Ethereum ETF ("ETHW" or the "Fund") is not suitable for all investors. An investment in ETHW is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment.

ETHW is not an investment company registered under the Investment Company Act of 1940 (the "1940 Act") and therefore is not subject to regulation under the 1940 Act, unlike most mutual funds or ETFs.

Shares of ETPs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The NAV may not always correspond to the market price of ether and, as a result, Creation Units may be created or redeemed at a value that is different from the market price of the Shares. Authorized Participants’ buying and selling activity associated with the creation and redemption of Creation Units may adversely affect an investment in the Shares.


ETHW will not participate in the proof-of-stake validation mechanism to earn additional ether or seek other means of generating income from its ether holdings.

The amount of ether represented by a Share will continue to be reduced during the life of the Fund due to the transfer of the Fund’s ether to pay for the Sponsor’s management fee, and to pay for litigation expenses or other extraordinary expenses. This dynamic will occur irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of ether.

There is no guarantee or assurance that the Fund’s methodology will result in the Fund achieving positive investment returns or outperforming other investment products.

Investors may choose to use the Fund as a means of investing indirectly in ether. An investment in the Fund is not a direct investment in ether. Because the value of the Shares is correlated with the value of the ether held by the Fund, it is important to understand the investment attributes of, and the market for, ether.

Ether Risk. There are significant risks and hazards inherent in the ether market that may cause the price of ether to fluctuate widely. The Fund’s ether may be subject to loss, damage, theft or restriction on access. Investors considering a purchase of Shares should carefully consider how much of their total assets should be exposed to the ether market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand the risks involved in the Fund’s investment strategy.

Liquidity Risk. The market for ether is still developing and may be subject to periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the desired price. Possible illiquid markets may exacerbate losses or increase the variability between the Fund’s NAV and its market price. The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares.

Regulatory Risk. Future and current regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Fund.

Blockchain Technology Risk. Certain of the Fund’s investments may be subject to the risks associated with investing in blockchain technology. The risks associated with blockchain technology may not fully emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that blockchain technology may be subject to widespread and inconsistent regulation.

Nondiversification Risk. The Fund is nondiversified and will hold a single issue. As a result, a decline in the market value of a particular issue held by the Fund may affect the Fund’s value more than if it invested in a larger number of issuers.

Recency Risk. The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. If the Fund is not profitable, the Fund may terminate and liquidate at a time that is disadvantageous to Shareholders.

Bitwise Investment Advisers, LLC serves as the sponsor of the Fund. Foreside Fund Services, LLC serves as the Marketing Agent for ETHW, and is not affiliated with Bitwise Investment Advisers, LLC, Bitwise, or any of its affiliates.