Carbon-neutral cryptocurrency spot ETF launches in Canada

Two climate-neutral, crypto-secured exchange-traded funds are about to be launched in Canada and offer institutional investors a more environmentally friendly alternative.

Canada-based asset manager Purpose Investments is preparing to launch two new crypto-based ETFs on the Toronto Stock Exchange in November.

Aim will launch its Bitcoin and Ethereum ETF under the tickers BTCC.J and ETHH.J. In contrast to recently launched funds in the USA, which are covered by futures, these funds are hedged and settled with BTC as an underlying asset.

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The Toronto-based company has partnered with Patch, a company that will help them measure the carbon footprint of their crypto portfolio and provide solutions for carbon removal. Measuring the carbon footprint of crypto mining is not an easy task because there are so many variables, but the company detailed its efforts and math in a white paper.

Purpose then invests in verified CO2 compensation projects with the aim of enabling customers to become CO2-neutral in BTC. Some of the projects being invested in include direct air capture, biomass, mineralization or carbon dioxide removal, forestry, marine manure and land management.

According to the company’s prospectus, Purpose’s new BTC fund held 24,167 BTC (about $ 1.6 billion) on November 8, while the Ether fund held 86,906 ETH (worth about $ 417 million) on November 8. Dollars)

Related: Green Bitcoin: Influence and Significance of Energy Consumption for PoW

Purpose Bitcoin ETF (BTCC-B.TO) is North America’s first Bitcoin fund, launched in February. It is currently valued at over a million dollars and, according to Yahoo! Finances.

Purpose Ethereum ETF (ETHH.TO) is unpopular with a daily volume of just USD 210,000, but has achieved 38% better returns over the past 30 days.

The company also launched its first carbon offset ETF in Europe in June. The fund is traded on the London Stock Exchange under the ticker ZERO and tracks the S&P Global Clean Energy Options Index.

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