DeFi Technologies subsidiary Valour will introduce its new Carbon Neutral Bitcoin Exchange Traded Product (ETP) on the Frankfurt Stock Exchange. ETP trading starts on September 23rd.
Company position its ETP as a “sustainable and climate-friendly” exposure to Bitcoin with a management fee of 1.49%. Compliance with global environmental goals and environmental, social and corporate governance (ESG) is said to be achieved through the funding of certified carbon removal initiatives and offsets to neutralize BTC’s associated carbon footprint.
In structuring the ETP, Valor partnered with Patch, a platform that provides infrastructure for climate action and has previously worked with Andreessen Horowitz and other major institutional investors. The notice states:
“All carbon emissions associated with an investment will be automatically targeted to achieve a carbon-neutral output using an API Patch-based solution that takes into account various inputs such as mining rig efficiency, hash power distribution, and national-level carbon emissions data. , to estimate the amount of carbon emissions that the Valor portfolio has.”
Patch will be responsible for selecting projects based on their environmental integrity. These criteria will include “additionality, real and verifiable permanence and negativity”.
Valor’s current ETP offerings include Valor Binance (BNB), Valor Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM), and Enjin (ENJ). In March 2022, the company announced that it had reached $274.2 million in assets under management.
Despite crypto markets falling this year, interest in financial products related to cryptocurrencies is not waning. In July, Swiss crypto investment firm 21Shares launched two new ETPs offering investors exposure to the largest cryptocurrency — Bitcoin (BTC) and ether (ETH) — while trying to mitigate volatility by rebalancing assets against the US dollar.