The new Carbon Neutral Bitcoin Exchange Traded Product (ETP) from Valour, a DeFi Technologies affiliate, will make its Frankfurt Stock Exchange debut. On September 23, trading of the ETP will start.
With a management fee of 1.49%, the business presents its ETP as a “sustainable and environmentally beneficial” exposure to Bitcoin. According to reports, the alignment with environmental, social, and corporate governance (ESG) goals is accomplished by supporting projects that are certified to remove and offset carbon emissions in order to offset the carbon footprint connected with BTC.
To structure the ETP, Valour partnered with Patch
Valour collaborated with Patch, a platform that offers infrastructure for climate action and has previously worked with Andreessen Horowitz and other eminent institutional investors, to develop the ETP. The notification reads:
“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 in charge of choosing the projects based on their respect for the environment. “Additionality, genuine and verifiable permanency, and negativity” will be part of the criterion.
In addition to Valour Binance (BNB), Valour Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM), and Enjin are some of the existing ETPs offered by Valour (ENJ). The business said in March 2022 that it had $274.2 million in assets under management.
Despite the collapse of the crypto markets this year, demand for financial products tied to cryptocurrencies is still strong. The Swiss cryptocurrency investing firm 21Shares introduced two new exchange-traded products (ETPs) in July with the goal of reducing volatility by giving investors exposure to the two largest cryptocurrencies, Bitcoin (BTC) and Ether (ETH).
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