European stock exchange to list Bitcoin carbon neutral ETP

DeFi Technologies, Value, will launch its new carbon neutral Bitcoin Exchange Traded Product (ETP) on the Frankfurt Stock Exchange. ETP trading starts on September 23rd.

The company positions the 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 funded through decarbonisation and the associated reduction of BTC’s carbon footprint.

To set up the ETP, Valor partnered with Patch, which provides infrastructure for climate action and has previously worked with Andreessen Horowitz and other prominent institutional investors. The ad says so.

“All carbon emissions associated with the investment are automatically targeted to achieve a carbon neutral product using the Peach API-based solution, which takes into account various inputs such as mining efficiency, hash power distribution and country-level carbon emission data. To estimate the carbon footprint of Valor’s portfolio”

Patch is responsible for selecting the projects based on their local integrity. These criteria include “additionality, real and verifiable sustainability and non-negativity”.

Related: The market will decide on post-merger Ethereum ETPs, says crypto executive

Valor’s suffering ETPs include Valor Binance (BNB), Valor Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM) and Enjin (ENJ). As of March 2022, the company reported $274.2 million in assets under management.

Despite the volatility of crypto markets this year, interest in crypto-related financial products is not fading. In July, Swiss crypto investment firm 21Shares launched two new ETFs that offer investors exposure to major cryptocurrencies – Bitcoin (BTC) and Ether (ETH) – with the aim of smoothing volatility by pegging assets to the US dollar.