Canada-based investment provider Accelerate Financial Technologies Inc. has announced plans to launch a carbon-negative Bitcoin ETF.
Accelerate plans to plant 3,450 trees for every $1 million CA ($788,200 US) invested in the Accelerate Carbon-Negative Bitcoin ETF (TSX:ABTC). Accelerate estimates each batch of trees planted will sequester 1,000 tons of carbon dioxide.
According to the Accelerate website, the company intends to sequester “over 100% of the estimated carbon dioxide emissions attributable to bitcoin transactions that ABTC is indirectly exposed to.”
Bitcoin has faced criticism this year for its negative environmental impact. The Bitcoin network consumes about 116 trillion watts per year, around 0.5% of the world’s total electricity.
Accelerate hopes to tap into the growing market for ESG (environmental, social, and governance) investment products. By planting trees, Accelerate offers more tangible environmental offsets than other ESG funds, many of which buy carbon credits.
H3M Environmental Ltd. is listed as the fund’s Environmental Advisor and will be responsible for the ABTC’s decarbonisation initiatives, including tree planting.
The fund will not hold Bitcoin directly, and will instead provide investors exposure to the performance of Bitcoin via Bitcoin futures contracts traded on the Chicago Mercantile Exchange.
ABTC will begin trading on the Toronto Stock Exchange Tuesday, with a management fee of 0.69%. Julian Klymochko, President, Director, CEO and CIO of Accelerate, will serve as the portfolio manager primarily responsible for advising and managing the fund.
Canada launched its first Bitcoin ETF, the Purpose Bitcoin ETF (TSX:BTCC.B), in February. The Purpose Bitcoin ETF is physically backed, meaning the fund holds Bitcoin directly. The fund has amassed an impressive $1.1 billion assets under management since its launch.
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