Purpose Investments has launched carbon-neutral share classes for the Purpose Bitcoin ETF and Purpose Ether ETF, the first directly backed cryptocurrency ETFs to list on a developed market stock exchange.
Som Seif, CEO of Purpose Investments.
The environmental impact of crypto assets has shifted into the mainstream consciousness in recent years. In particular, proof-of-work networks such as Bitcoin and Ethereum have been found to be very energy-intensive, resulting in massive CO2 emissions.
Research on the exact carbon footprint of blockchains is a relatively novel field. Complicating the creation of a commonly agreed framework is the diverse energy mix used by network participants, the different consensus mechanisms applied, and the various ways different blockchains incorporate growth, new wallets, and new transactions.
Seeking clarity on these issues, Purpose has partnered with Patch Technologies, an API-first platform for carbon removal, who will conduct daily measurements of the carbon impact of the ETF’s underlying bitcoin and ether.
Based on these findings, on a weekly basis, Purpose will purchase and retire a suitable number of carbon offsets that are verified and vetted by Patch.
The new carbon-neutral share classes of the Purpose Bitcoin ETF and Purpose Ether ETF have been listed on the Toronto Stock Exchange under the tickers BTCC.J CN and ETHH.J CN, respectively.
Each comes with a management fee of 1.00% which is the same as the ETFs’ original non-carbon-neutral share classes.
Som Seif, Founder and CEO of Purpose Investments, said: “We believe in the potential of cryptocurrency but we can’t ignore the carbon impact of Bitcoin and Ethereum mining. We hope these carbon-neutral classes will provide our sustainability-minded investors an opportunity to invest in crypto while addressing the environmental impact this amazing asset can have. We’re extremely proud to offer this innovation and believe it could be the first step toward increased sustainability in the cryptocurrency space which we care deeply about.”
Brennan Spellacy, co-Founder and CEO of Patch, added: “The crypto community has moved quickly and decisively over the past months to address the industry’s climate impact. Purpose Investments is taking a leading role in this effort. We’re proud to support their carbon-neutral crypto ETFs by measuring their carbon footprints and providing access to high-quality carbon offset and removal projects.”