Brazil-based asset manager Hashdex will launch a fully bitcoin-based exchange-traded fund (ETF) that seeks to neutralize carbon emissions, the company announced Tuesday.
The ETF will use a portion of the management fee to buy carbon credits and offset the carbon produced by the bitcoin held in the fund, Roberta Antunes, chief of growth at Hashdex, told CoinDesk.
The product will be listed on Brazilian stock exchange B3 as of Aug. 4, Antunes said. Investors have until July 30 to secure the first shares of the Hashdex Nasdaq Bitcoin Reference Price Index Fund (BITH11).
“We understand that bitcoin can contribute greatly to encouraging the use of clean energy around the world. We want to anticipate this movement and offer investors a product that stimulates the sustainable potential of this asset,” said Antunes. She added that the company has the support of the Crypto Carbon Ratings Institute (CCRI).
According to Hashdex, CCRI will produce annual reports containing calculations and estimates of energy consumption and carbon emissions relating to the mining process of all bitcoins acquired by BITH11.
Based on the calculations, the ETF will reduce its carbon footprint and seek to invest in stocks that make it feasible to maintain the environment, said Antunes. She said Hashdex will rely on CCRI’s assistance in selecting potential partners and projects that aim to reduce the environmental impact in Brazil and worldwide.
XP, Itaú BBA and Banco Genial will be the coordinators of the new ETF offering, according to Hashdex.