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Canada Gets Bitcoin and Ethereum Carbon Neutral ETFs

While the SEC hesitates to approve anything beyond a Bitcoin Futures ETF, Canada has moved leagues ahead on crypto acceptance. Yesterday, Purpose Investments launched another pair of series for its Bitcoin and Ethereum ETFs in the country. Notably, these variants have a structure that specifically help their cryptocurrencies achieve net-zero carbon output.

Green Bitcoin and Ethereum ETFs

Purpose Investments announced their new exchange products in a press release on Tuesday in partnership with Technologies. Their carbon-neutral series of Bitcoin and Ether ETFs now trades on the Toronto Stock Exchange (TSX). Their ticker symbols are BTCC.J and ETHH.J, respectively and do not impact the existing BTCC and ETHH ETFs on the market.

Many have criticized he primary cryptocurrencies for their carbon footprint, which results from proof-of-work mining. Although energy issues are typically overstated in the crypto space, investors and public voices are nevertheless concerned. As a result, the new ETFs will purchase carbon offsets to make up for their cryptocurrency’s “emissions.” And, this will depend on calculations by Patch’s measurement methodology.

Som Seif – CEO of Purpose Investments – is personally concerned with both chains’ environmental damage.

“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 ETF classes will provide our sustainability-minded investors an opportunity to invest in crypto while addressing the environmental impact this amazing asset can have,”

The president considers their new series a first “step forwards” towards sustainability in the crypto industry. That said, industry players have already taken steps to respect ESG. For example, Ethereum 2.0 should move the network to an energy-conservative proof-of-stake consensus mechanism. Furthermore, since it ejected miners from China, they have been aggregating in more ESG friendly western areas.

Where Is The US on Crypto ETFs?

This new product adds to the multiple Bitcoin and Ether ETFs already listed on the TSX. In September, Canada even allocated its first multi-crypto ETF. It did so proportionately in a mix of BTC and ETH depending on their market share.

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Meanwhile, the United States only approved a handful of Bitcoin futures ETFs last month. SEC chairman Gary Gensler remains hesitant to approve anything else due to investor protection concerns. Meanwhile, Hester Pierce – a member of his commission – remains disappointed in the SEC’s progress on the issue.

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