Accelerate Financial Technologies, a Canadian investment firm, has announced plans to plant 3450 trees for every C$1 million investment in its carbon-negative Bitcoin Exchange Traded Fund (ETF) to offset the environmental impact of cryptocurrency mining.
A new Bitcoin ETF
The fund, from the Calgary-based company, will be launched on 31 August on the Toronto Stock Exchange under the symbol ABTC. It aims to offer investors exposure to Bitcoin’s performance by investing in derivatives, but naturally has a high level of risk.
Accelerate’s Carbon-Negative Bitcoin ETF (TSX:ABTC) intends to lock in more than 100% of the estimated carbon dioxide emissions attributable to bitcoin transactions that ABTC is indirectly exposed to by funding decarbonization initiatives, including its global tree planting and cultivation program.
In addition, Accelerate, with this strategy, is seeking to meet the growing demand from eco-friendly investors who are increasingly focusing on companies with sustainable finance projects and who strongly consider ESG factors (environmental, social and governance) when making investment decisions.
Bitcoin, mining and the environment
Accelerate wants to demonstrate that Bitcoin can meet the environmental, social and governance standards that many investors have begun to prioritize, creating value through activities that not only generate economic value, but are also beneficial to society and not a burden on the environmental system.
According to the company’s vision, each investment will help decrease about 1000 tonnes of carbon dioxide. The first project will focus on planting mangrove trees in Madagascar.
Growing concern about the potential depletion of resources has reached Elon Musk, making him dubious about supporting BTC mining and the excessive use of fossil fuels.
This initiative is a significant step towards raising awareness around the issues of pollution and climate change, and sets an example for the public’s attitude towards the eco-friendliness of Bitcoin mining.
Julian Klymochko, the company’s chief investment officer, said in an interview:
“Accelerate preferred a tangible option via tree planting versus buying so-called carbon credits, with the latter not producing the same environmental benefits”.
In 2021, Canadian regulators gave the green light to many Bitcoin and Ethereum ETFs, while the US Securities and Exchange Commission has yet to approve any crypto ETFs in the US.
Accelerate aims to become the leading ETF company through a constant focus on innovation and customer needs by also, as in this case, considering new social values.