Hashdex has committed to investing a portion of the funds managed by its new BITH11 exchange-traded fund in carbon credits and green technology.
BITH11, a newly launched exchange-traded fund (ETF) in Brazil by crypto-focused alternative investment firm Hashdex Asset Management, is billed as the country’s first “green” Bitcoin ETF.
The fund intends to offset its carbon emissions by purchasing carbon credits. To accomplish the ETF’s objectives, Hashdex has partnered with Germany’s Crypto Carbon Ratings Institute (CCRI), which will produce annual reports estimating the energy consumption and carbon emissions associated with the creation of the fund’s BTC.
The ETF is currently targeting an annual investment of 0.15 percent of its liquid assets in carbon credits and environmentally friendly technologies. The fund was launched late last week on the B3 Brazilian Stock Exchange under the ticker BITH11.
According to a rough translation, Rogerio Santana, relationship director at the So Paulo-based B3 exchange, stated
“The new ETF offers investors exposure to variations in the world’s main digital asset, with all its growth potential and value reserve, in a regulated, secure manner and under sustainability goals,”
Hashdex is a provider of regulated cryptocurrency investment funds, having launched its first fund in 2017. Bloomberg reports that HASH11 has gained 33% in the last month. Along with HASH11 and BITH11, Hashdex offers a weighted Nasdaq Crypto Index (NCI) fund that tracks BTC, as well as a Bitcoin Risk Parity Gold Fund.
Green crypto funds have grown in popularity this year as concerns about crypto mining operations’ fossil fuel-based energy consumption entered mainstream discourse. Ninepoint, a Canadian Bitcoin ETF issuer, announced plans in May to offset the carbon footprint of its BTC fund through a partnership with carbon offset provider CarbonX.
One River Digital, a crypto-focused hedge fund manager, reported a surge in demand for carbon-neutral Bitcoin investment products the following month. On August 3, SkyBridge Capital, a global investment firm, announced a partnership with carbon credit provider MOSS Earth to purchase tokens representing 38,436 tons of carbon offsets.
Also Read: Lawmakers Will Vote For A Crypto Tax Bill On Tuesday
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