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Ninepoint Partners LP is seeking to lessen apprehension about the energy usage of Bitcoin by dedicating a portion of its crypto ETF’s management fee to offset the fund’s carbon footprint.

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“For some investors who are concerned about the carbon footprint of mining, they may be wary of investing in a Bitcoin ETF,” said Alex Tapscott, managing director of digital assets at the Toronto-based firm, referring to the vast array of computers worldwide that compete to confirm Bitcoin transactions. “What we’re doing is creating what we hope is a solution to that problem and giving them the choice that they want and, frankly, that they need.”

The effort comes as critics say Bitcoin’s environmental record has worsened while its price has skyrocketed. Bank of America, for instance, said recently the energy used by the network of computers that power the digital coin is comparable to that of many developed countries and rivals the emissions from major fossil-fuel users and producers.

Ninepoint, which has about $6.5 billion in assets under management and institutional contracts, is partnering with environmental software fintech-firm CarbonX to purchase carbon credits and support forest conservation projects. It’s also working with theCrypto Carbon Ratings Institute, which will, together with CarbonX, provide carbon footprint analysis. Ninepoint didn’t disclose how much of the management fee would be contributed.

(Excerpt) Read more Here | 2021-05-10 02:00:00
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