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- Crypto spot ETFs will be launched by Purpose Investment in Canada
- The two cryptocurrency financial products will remain carbon-neutral
- To measure the carbon footprint, Purpose collaborated with Patch
- The assets manager will now invest in carbon offsetting projects
Crypto spot ETFs are in demand in the United States in the currency scenario. After the US Securities and Exchange Commission (SEC) approved the first Bitcoin future-based ETF in the nation, firms began to submit proposals for crypto spot products as well. However, while the US SEC is yet to give a decision on cryptocurrency spot ETF, Canada announced plans to launch two Carbon-neutral financial products. Indeed, digital financial products will offer a greener alternative for institutional investors. Notably, the product will be introduced by Purpose Investment, a Canadian asset manager on the Toronto Stock Exchange.
Purpose partners Patch to bring crypto spot ETFs
Purpose Investment will launch its Bitcoin and Ethereum exchange-traded funds (ETFs). The cryptocurrency financial products will be launched under the BTCC.J and ETHH.J tickers. The asset manager has collaborated with Patch, a firm that helps to measure the carbon footprint of the cryptocurrency portfolios. Moreover, Patch will also offer carbon-removal solutions.
Measuring the carbon footprints of cryptocurrency mining is not a simple task. There are several variables, still the Patch has detailed its efforts and the math in a white paper.
Purpose will invest in carbon offsetting projects
The two carbon-neutral crypto spot ETF will remain unlike the products that have been rolled out in the United States recently. The financial instruments will be backed by Bitcoin itself. Purpose Investment aims to give clients carbon-neutral exposure to Bitcoin. Hence, the asset manager plans to invest in vetted carbon offsetting projects. Such projects will include direct air capture, biomass, mineralization or carbon dioxide removal, forestry, soil management, and ocean fertilization.
Purpose Investment has over $1 million in volume
Purpose Investment is the first firm to launch a Bitcoin ETF in North America. According to the firm’s prospectus, it’s new BTC fund held 24,167 BTC. And the firm’s Ether fund had 89,906 coins in total. Launched in February Purpose has over $1 million in volume and has returned almost 20% over the last few months. However, the firm isn’t that popular, still was able to reap a better return of 38% within a month. Besides Canada, Purpose had first launched a carbon offsetting crypto spot ETFs in Europe. The fund has been traded on the London Stock Exchange since then.
