A new exchange-traded fund (ETF) launched in Brazil by crypto-focused alternative investment firm Hashdex Asset Management claims to be the country’s first “green” Bitcoin ETF. The Asset Management fund plans to neutralize its associated carbon emissions through purchasing carbon credits — a recent trend in the crypto industry. Hashdex has partnered with Germany’s Crypto Carbon Ratings Institute (CCRI) — which will produce annual reports estimating the energy consumption and carbon emissions underpinning the creation of BTC acquired by the fund.
The ETF is currently aiming to invest 0.15% of its liquid assets into carbon credits.
The exchange-traded fund is currently aiming to invest 0.15% of its liquid assets into carbon credits and eco-friendly technologies every year. The fund was launched on the B3 Brazilian Stock Exchange late last week under the ticker BITH11. Rogerio Santana, relationship director at the São Paulo-based B3 exchange, stated, “The new ETF offers investors exposure to variations in the world’s main digital asset, with all its growth potential and value reserve, in a regulated, secure manner and under sustainability goals.”
Green crypto funds have grown in popularity this year.
Green crypto funds and carbon credits have grown in popularity this year as concerns over the fossil fuel-based energy consumption of crypto mining operations entered mainstream discourse. Earlier this year, Canadian Bitcoin ETF issuer, Ninepoint, announced plans to offset the carbon footprint of its BTC fund, partnering with carbon offsetting service provider CarbonX. In June, crypto-focused hedge fund manager One River Digital reported a surge in demand for carbon-neutral Bitcoin investment products. As reported earlier, Global investment firm SkyBridge Capital announced that it had partnered with carbon credit provider MOSS Earth to purchase tokens representing 38,436 tons of carbon offsets.