ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Environmental Pressure on Bitcoin Following Merge
Crypto Channel
Share

Environmental Pressure on Bitcoin Following Merge

Tom LydonSep 16, 2022
2022-09-16

In the wake of the widely anticipated, just-completed Ethereum merge, some crypto market observers believe there is increasing pressure on bitcoin miners to prioritize environmental sustainability, including elevated adoption of renewable energy.

Should that move come to fruition in earnest, it would have potentially positive implications for an assortment of exchange traded funds, including the Invesco Alerian Galaxy Crypto Economy ETF (SATO ). SATO’s 42 holdings include several of the most notable names in cryptocurrency mining, confirming the ETF is relevant in this conversation.

“In a Thursday notice following the Merge, the United States-based Environmental Working Group, or EWG, announced it would be starting a $1-million campaign aimed at urging Bitcoin (BTC) to go green as opposed to using an outdated protocol’ like PoW. The announcement came amid environmental activity group Greenpeace launching a petition directly at Fidelity Investments to facilitate the transition to PoS,” reported Turner Wright for Coin Telegraph.

For those not familiar with crypto lingo, “PoW” refers to “proof of work,” while “PoS” is the abbreviated version of “proof of stake.”

In simple terms, proof of stake is viewed as the more environmentally sound option, and with Ethereum — the second-largest digital asset by market value — making that move, there’s pressure on bitcoin to do the same.

“Many U.S. lawmakers have targeted major Bitcoin miners, with members of the House Energy and Commerce Committee requesting in August that mining firms provide information including the energy consumption of their facilities, energy sources and what percentage came from renewables. At the state level, New York has proposed imposing a two-year moratorium on PoW mining, legislation that would also prohibit the renewal of licenses to existing companies unless they were operating on 100% renewable energy,” according to Coin Telegraph.

Those actions aren’t falling on deaf ears, as some SATO components are displaying willingness to embrace renewable energy. Some were doing just that prior to the Ethereum merge.

There are compelling reasons for crypto miners to boost adoption of renewable energy. By proving they’re willing users of green energy sources, bitcoin miners can reduce regulatory headwinds while potentially boosting environmental, social, and governance credentials.

Some investors may not be prioritizing those issues, but for the pure capitalists out there, SATO member firms reducing dependence on fossil fuels and increasing consumption of renewables could accrue bottom line benefits over time.

For more news, information, and strategy, visit the Crypto Channel.

vettafi.com is owned by VettaFi, which also owns the index provider for SATO. VettaFi is not the sponsor of SATO, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X