DeFi Technologies subsidiary Valor will launch its new exchange trading product (ETP), Carbon Neutral Bitcoin, on the Frankfurt Stock Exchange. ETP trading will begin on September 23.
The company touts its ETP as a “sustainable and climate-friendly” exposure to bitcoin with a management fee of 1.49%. Global environmental goals and environmental, social and corporate governance (ESG) would be aligned by funding certified carbon removal and offset initiatives to neutralize BTC’s carbon footprint.
To structure the ETP, Valor partnered with Patch, a platform that provides climate action infrastructure and has previously worked with Andreessen Horowitz and other prominent institutional investors. The notice says:
“All the carbon emissions associated with an investment to achieve carbon-neutral production will be automatically targeted using the API-based Patch solution, which takes into account various inputs, such as the efficiency of the mining equipment, energy distribution and carbon emissions data at national level. , to estimate the amount of carbon emissions from the Valor portfolio. »
Patch will be responsible for selecting projects based on their environmental integrity. These criteria will include “complementarity, actual and verifiable permanence, and nuisance”.
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Valour’s current lineup of Valor ETPs includes 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 reaching $274.2 million in assets under management.
Despite the fact that cryptocurrency markets have crashed this year, the interest in financial products related to cryptocurrency is not decreasing. In July, Swiss crypto investment firm 21Shares launched two new ETPs that offer investors exposure to the major cryptocurrencies, bitcoin (BTC) and ether (ETH), with the aim of mitigating volatility by rebalancing assets against the US dollar .