Carbon Neutral Spot ETFs Launched in Canada

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Two exchange-traded funds backed by carbon-neutral cryptocurrencies are about to be launched in Canada, offering a greener alternative to institutional investors.

Canadian asset manager Purpose Investments is set to launch two new crypto-based ETFs on the Toronto Stock Exchange on Nov. 9, both of which offer carbon offsets to investors.

Purpose will launch its Bitcoin and Ethereum ETFs under the tickers BTCC.J and ETHH.J. Unlike recently launched funds in the US which are futures backed, these funds will be backed and settled using BTC as the underlying asset.

Tomorrow @PurposeInvest is launching new share classes for their #Bitcoin and #Ethereum ETFs – $ BTCC and $ ETHH. These will be “Carbon Offset” share classes and will be rated “/ J”. Pages below. pic.twitter.com/W9QYS4232U

– James Seyffart (@JSeyff) November 8, 2021

The Toronto-based company has partnered with Patch, a company that will help it measure the carbon footprint of crypto wallets and deliver decarbonization solutions. Measuring the carbon footprint of crypto mining is no easy task because there are so many variables, but the company has detailed its efforts and the math in a white paper.

Purpose will then invest in approved carbon offset projects with the aim of providing clients with carbon neutral exposure to BTC. Some of the projects he will invest in include direct air capture, biomass, carbon dioxide mineralization or removal, forestry, ocean fertilization and soil management.

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

Related: Green Bitcoin: The Impact And Importance Of Power Consumption For PoW

The Purpose Bitcoin ETF (BTCC-B.TO) was North America’s first Bitcoin fund launched in February. It currently has over $ 1 million in volume and grossed nearly 20% in the past month according to Yahoo! Finance.

The ETF Purpose Ethereum (ETHH.TO) is not as popular with just $ 210,000 in daily volume, but it has achieved a 38% better return in the last 30 days.

The company also launched the first ETF integrating carbon offsetting in Europe in June. The fund is listed on the London Stock Exchange under the symbol ZERO and tracks the S&P Global Clean Energy Select Index.

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