Carbon neutral crypto spot ETFs to be launched in Canada
Cutting carbon emissions (CO2) is now a major concern for the crypto industry too.
Cutting carbon emissions (CO2) is now a major concern for the crypto industry too. Taking this into account, Canada based asset manager Purpose Investments is going to launch two carbon neutral crypto exchange-traded fund (ETFs) spots.
Purpose Investments will measure the carbon footprint associated with its portfolio and purchase carbon offsets accordingly. The ETFs that will be listed today on the Toronto Stock Exchange will offer investors a carbon offset.
Many experts have been concerned by huge usage of power being used to mine cryptocurrencies globally today. Bitcoin (BTC) has the major share in the consumption of power.
The two carbon neutral cryptocurrency-backed ETFs will provide a greener alternative for institutional investors, who want to invest in cryptocurrencies, but stayed away due to CO2 concerns by miners.
Purpose will launch their Bitcoin and Ethereum ETFs under the BTCC.J and ETHH.J tickers and these funds will be backed and settled using BTC as the underlying asset.
For this, Purpose has partnered with Patch, a firm that will help it measure the carbon footprint of the crypto portfolios and offer carbon-removal solutions.
Measuring the carbon footprint of crypto mining is no easy task as there are so many variables, but the firm has given all details and explained it in a whitepaper.
Purpose will then invest in vetted carbon offsetting projects with the aim to give clients carbon neutral exposure to BTC. Some of the projects it will invest in include direct air capture, biomass, mineralization or carbon dioxide removal, forestry, ocean fertilization, and soil management.
According to the firm's prospectus, Purpose's new BTC fund held 24,167 BTC (approx. $1.6 billion) as of November 8, while the Ether fund had 86,906 ETH (worth roughly $417 million).
The company also launched the first ETF that incorporates carbon offsetting in Europe in June. The fund trades on the London Stock Exchange under the ticker ZERO and tracks the S&P Global Clean Energy Select Index.
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