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European stock exchange will debut Bitcoin carbon neutral ETP

  • News
  • September 23, 2022
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The environmentally-focused economic product was introduced by a subsidiary of DeFi Technologies.

A subordinate of DeFi Technologies, Valour, will debut its new Carbon Neutral Bitcoin Exchange Traded Product (ETP) on the Frankfurt Stock Exchange. Trading of the ETP starts on Sept. 23.

The company positions its ETP as a “sustainable and climate-friendly” revelation to Bitcoin with a management fee of 1.49%. The placement with global environmental goals and Environmental, Social and Corporate Governance (ESG) is reportedly attained through funding certified carbon removal and offset initiatives to neutralize the associated BTC carbon footprint.

To structure the ETP, Valour partnered with Patch — a platform that provides climate action infrastructure and has formerly worked with Andreessen Horowitz and other notable institutional investors. The declaration states:

“All carbon emissions linked to the investment will be automatically targeted to achieve carbon neutral output using Patch’s API-based solution, which takes into account various inputs, such as the efficiency of mining equipment, distribution of hash power, and nation level carbon emission data, to estimate the amount of carbon emissions the Valour portfolio has.”

Patch will be accountable for selecting the projects upon based on their environmental veracity. These criteria will include “additionality, real and verifiable permanence, and negativity.”

Valour’s existing soffering of ETPs includes Valour Binance (BNB), Valour Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM) and Enjin (ENJ). In March 2022, the company stated that it has reached $274.2 million in possessions under management.

In spite of crypto markets tanking this year, the interest in crypto-related financial products isn’t fading. In July, Swiss crypto investment firm 21Shares launched two new ETPs offering investors exposure to the largest cryptocurrencies — Bitcoin (BTC) and Ether (ETH) — while aiming to soften volatility via rebalancing assets to the United States dollar.

 

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