Canadian Bitcoin ETF issuer seeks ‘green BTC’

by Gordon James

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An important point of distinction for the Bitcoin ETF is that it will be “green BTC,” or Bitcoin that burns fewer carbon-emitting fossil fuels during production. The proposed fund will only invest in BTC mined using renewable energy, and will enforce that requirement in the supply chain.

There are many reasons to be excited about the impending launch of a bitcoin exchange-traded fund (ETF) in Canada. (In case you aren’t already aware, an ETF is an investment fund that tracks an index, commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange.)

Ninepoint Partners LP, one of Canada’s bitcoin exchange-traded fund (BTC) issuers, has announced its intention to offset the carbon footprint of its BTC ETF product.

Ninepoint has entered into a partnership with CarbonX, according to a statement on Monday. As part of the partnership, Ninepoint will use an undisclosed portion of its management fee to purchase carbon credits to offset the environmental impact of the bitcoin mining process on the BTC held in the fund.

As Cointelegraph previously reported, Ninepoint announced plans last March to convert its bitcoin trust into an ETF, and the fund’s prospectus was filed with regulators last month.

As part of the partnership, the Cryptocurrency Ratings Institute will also provide scientific estimates of bitcoin mining energy consumption. Reportedly, the carbon credits purchased will be used to protect the Amazon forest.

Alex Tapscott, director of digital assets at Ninepoint, told Bloomberg why:

Some investors concerned about the carbon footprint of mining may be reluctant to invest in bitcoin ETFs. We create what we hope is a solution to that problem and give them the choices they want and, frankly, need.

The story of the boiling ocean continues to be associated with bitcoin mining, with critics pointing to the high energy consumption of mining operations around the world. In early May, a bill was introduced in the New York State Senate that would ban the mining of BTC in the state for three years for energy reasons.

From China to Iran, mining companies are increasingly faced with regulations on energy consumption and environmental impact. Bitcoin proponents, on the other hand, say miners are getting the last chance to buy up renewable energy.

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