Two carbon neutral firms set to launch crypto spot ETFs in Canada
Two carbon neutral crypto-backed firms are set to launch exchange-traded funds in Canada as a green alternative tailor-made for institutional investors.
Canadian asset manager Purpose Investments is scheduled to launch new crypto-based ETFs on November 9, over the Toronto Stock Exchange on November 9.
The firm, Purpose, would be launching their Bitcoin and Ethereum ETFs under the BTCC.J and ETHH.J tickers. Unlike the recently launched US funds that are future-backed, these funds would be both backed and settled with BTC as the underlying asset.
The Toronto-based firm has collaborated with Patch, a company that would help it measure the carbon footprint of the crypto portfolios for offering carbon-removal solutions. To measure the carbon footprint of crypto mining is not at all an easy task due to the presence of so many variables. Still, the company has detailed its efforts and the calculation in a whitepaper.
The firm, Purpose would then make investments in vetted carbon offsetting projects , hence aiming to give clients carbon neutral exposure to BTC.
Some of the projects it is planning to invest in include biomass, direct air capture, forestry, mineralization or carbon dioxide removal, ocean fertilization and soil management.
According to Purpose’s latest prospectus, its new BTC fund held 24,167 BTC (roughly $US1.6 billion) as of November 8, while the Ether fund had 86,906 ETH (about $US417 million) as of November 8.
The Purpose Bitcoin ETF (BTCC-B.TO) had been recorded as North America’s first Bitcoin fund that was launched in February 2021. It currently holds over a million dollars in volume and has reported having returned almost 20 per cent over the last month, according to Yahoo! Finance.
The Purpose Ethereum ETF (ETHH.TO) is not much popular, recording just $210,000 in daily volume, although it has made a better return of 38 per cent in the last one month.
The company had also launched the first ETF to have incorporated carbon offsetting in Europe in June 2021. The fund presently trades on the London Stock Exchange under the ticker ZERO, tracking the S&P Global Clean Energy Select Index.