The new exchange-traded fund (ETF) BITH11, launched in Brazil by crypto-specialist alternative investment firm Hashdex Asset Management, claims to be the country’s first “green” Bitcoin ETF.
The fund wants to neutralize its CO2 emissions by purchasing CO2 credits. To achieve the ETF’s goals, Hashdex has partnered with the German Crypto Carbon Ratings Institute (CCRI), which will produce annual reports that estimate energy use and carbon emissions. These show how much CO2 was generated from the fund’s acquired BTC.
The ETF plans to initially invest 0.15 percent of its liquid funds annually in emissions certificates and environmentally friendly technologies. The fund was listed on the Brazilian B3 exchange late last week under the ticker symbol BITH11.
Rogerio Santana, the Relationship Director at B3 Stock Exchange in São Paulo, said:
“The new ETF offers investors the opportunity to invest in the fluctuations in the world’s largest digital asset, which offers growth potential and reserves of value. Investors can do so via a regulated and secure platform that takes sustainability goals into account.”
Hashdex launches regulated crypto mutual funds and launched its first crypto ETF called HASH11 in April this year, up 33 percent last month, according to Bloomberg.
In addition to HASH11 and BITH11, Hashdex also offers the weighted Nasdaq Crypto Index (NCI) fund, which tracks BTC. The platform also offers the Bitcoin Risk Parity Gold Fund.
In this context: SkyBridge buys 38,500 tons of CO2 credits
Green crypto funds have become more popular this year. The energy consumption of crypto mining, where electricity is still mainly generated by fossil fuels, is discussed more and more often.
In May, the Canadian Bitcoin ETF issuer Ninepoint announced that it wanted to offset the carbon footprint of its BTC fund. To this end, the company has entered into a partnership with the CO2 compensation service provider CarbonX.
The following month, hedge fund manager One River Digital, specializing in cryptocurrencies, reported an increase in demand for carbon-neutral Bitcoin investment products.
On August 3, global investment firm SkyBridge Capital announced it had partnered with carbon credit provider MOSS Earth. As part of this partnership, the investment company wants to buy tokens that contain 38,436 tons of CO2 credits.