Carbon neutral crypto spot ETF will be launched in Canada

Two exchange-traded funds backed by carbon-neutral cryptocurrencies are ready to be launched in Canada to provide institutional investors with a more environmentally friendly option.

Canadian Asset Management Corporation Purpose Investment Corporation is preparing to launch two new cryptocurrency-based ETFs on the Toronto Stock Exchange on November 9. Both products provide carbon offsets for investors.

The purpose is to launch their Bitcoin and Ethereum ETFs under the stock codes of BTCC.J and ETHH.J. Unlike funds supported by futures contracts recently launched in the United States, these funds will use BTC as the underlying asset for support and settlement.

The Toronto-based company has partnered with Patch, which will help it measure the carbon footprint of its crypto portfolio and provide carbon removal solutions.Measurement The carbon footprint of crypto mining is not easy Because there are many variables, but the company has detailed its efforts and mathematics white paper.

Purpose will then invest in vetted carbon offset projects aimed at 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.

According to the company’s ProspectusAs of November 8, Purpose’s new BTC fund held 24,167 BTC (approximately USD 1.6 billion), and as of November 8, the Ether Fund held 86,906 ETH (approximately USD 417 million).

related: Green Bitcoin: The impact and importance of energy usage on PoW

The destination Bitcoin ETF (BTCC-B.TO) is North American The first Bitcoin fund launched in FebruaryAccording to reports, its current trading volume is more than $1 million, and the return rate in the past month is close to 20%. Yahoo!finance.

Purpose The daily trading volume of Ethereum ETF (ETHH.TO) is not as popular as USD 210,000, but it has achieved a better return of 38% in the past 30 days.

The company also launched the first ETF with carbon offset in Europe in June. The fund is traded on the London Stock Exchange with a stock code of zero and tracks the Standard & Poor’s Global Clean Energy Select Index.