In Canada, two (2) carbon neutral crypto ETFs are ready to be launched. They will provide a greener alternative for institutional investors.
Green Bitcoin and Ethereum ETFs
The launch of the ETFs will be led by Canadian-based asset manager ‘Purpose Investments’. They are expected to launch the 2 crypto ETFs on the Toronto Stock Exchange later today. The ETFs reportedly offer investors carbon offsets.
The investment firm is set to launch their Bitcoin and Ethereum ETFs under the tickers: BTCC.J and ETHH.J. Unlike the funds recently launched in the US that are backed by futures, these funds are backed and settled with BTC as the underlying asset.
tomorrow @PurposeInvest is launching new share classes for their #Bitcoin and #Ethereum ETFs — $BTCC and $ETH. They will be “Carbon Offset” share classes and will be denoted “/J”. Pages below. pic.twitter.com/W9QYS4232U
— James Seyffart (@JSeyff) Nov 8, 2021
Investing in transparent CO2 compensation projects
To measure the carbon footprint of the crypto wallets and offer carbon removal solutions, a partnership has been launched with Toronto-based firm Patch. Measuring the carbon footprint of crypto mining in particular is a difficult task. This is because there are many variables to take into account. However, the company has found solutions for this.
Purpose will then invest in transparent carbon offset projects with the main goal of providing customers with 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.
Not the first CO2-neutral crypto ETF
Purpose’s new BTC fund reportedly held approximately 24,167 BTC (approximately $1.4 billion) on November 8, while the Ether fund held 86,906 ETH (worth approximately $360 million) on November 8, 2021.
Last June, the investment firm launched its first carbon offset ETF in Europe. This ETF was launched on the London Stock Exchange at the time, under the ticker ‘ZERO’. The ETF also tracks the S&P Global Clean Energy Select Index. This index measures the clean energy performance of the 30 largest global companies in both developed and emerging markets.