One River Digital Asset Management said an “overwhelming” majority of an asset in its institutional bitcoin fund has chosen to switch to One River’s new carbon neutrality share class.
This announcement, made possible by our client, is an important step in the right direction. Their actions will give a benchmark for institutional investor behavior moving forward. One river also applied for Carbon Neutral Bitcoin ETF in the US.
One River created an option for institutional investors to invest in digital strategies offsetting the carbon emission of crypto mining. The firm developed an index (BTC.X) based on estimated carbon emitted per bitcoin.
The giant corporations have highlighted the impact of the bitcoin mining process on the environment. As we know, Tesla also stopped accepting bitcoin as payment for its electric vehicles due to environmental issues. The company demands a cleaner approach to start accepting Bitcoin again.
For One River, that means using an Index to assign a $55 per year, or 0.15% of cost of bitcoin to tokenized carbon credit premium for each bitcoin purchase. The firms say it is based on the amount of carbon used to mine a single coin. One River buys tokenized carbon credits, validated on a Blockchain.
“WE’ve spent this year working to address carbon footprint of bitcoin for investors,” says Marcel Kasumovich, head of Research at One River.
One River digital looks to construct an ecosystem that supports clean digital assets. It is the first institutional digital asset manager to deliver this capability to its client.
“We look forward to further opportunities as the digital asset ecosystem seeks a 100% carbon neutral future,” said President Sebastian Bea.
