One River applies for a carbon-neutral Bitcoin ETF

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Bitcoin hedge fund One River Asset Management filed заявку to launch an ETF based on the first cryptocurrency. Its hallmark will be purchases of carbon credits to offset CO2 emissions associated with mining the acquired assets.

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“There is a lot of talk about carbon footprints. We decided that the time has come to act,” said Eric Peters, the company’s chief executive, to Bloomberg in April 2021.

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According to the filing, the instrument is planned to be listed on the NYSE.

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“The price of the settled Bitcoin ETF shares will mirror the volume-weighted average price of Bitcoin on leading spot exchanges. It is expected to be adjusted for the current cost of “carbon credits” needed to offset CO2 emissions attributable to each coin.”

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The initiative will be implemented in partnership with LIRDES S.A., based in Uruguay, known as Moss Earth. The agreement runs through 2031 with the possibility of renegotiation thereafter.

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The partner will provide the ability to purchase and retire MCO2 tokens issued on the blockchain of Verra, the firm specializing in carbon credits. The instrument is a certified certificate for reducing greenhouse gas emissions.

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Ninepoint Partners, the Toronto Stock Exchange-listed bitcoin ETF provider, allocate an undisclosed portion of its management fee toward reducing its carbon footprint.

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