Accelerate Financial Technologies, a Canadian firm for financial investment services, is preparing to plant numerous trees to be matched with each investment made in its awaiting exchange-traded fund of Bitcoin. On Friday, Bloomberg reported that the firm had taken an oath to plant up to 3,450 trees in return for each $1M of CAD investments in its ETF fund of BTC (Bitcoin). The step is a part of the company’s target to make the Bitcoin ETF carbon negative. By eliminating more carbon dioxide out of the environment than the production of Bitcoin mining energy, the prescribed aim can be achieved. It has been claimed by the firm that each of the major investments would result in carbon dioxide’s 1,000 tons.
Julian Klymochko, the investment officer of Accelerate, did not support the move of equating each investment with a tree to wrongly promoting the company by pretending that it is atmosphere-friendly. He stated that the firm should plant trees rather than buying carbon credits that would label its product to be carbon negative. Similar to Accelerate, Ninepoint Partners LP is also organizing to propose a green ETF of Bitcoin. In May, the firm mentioned that it would buy carbon credits to counterbalance the environmental effect created by its crypto.
A lot of firms in the blockchain and crypto space, along with the mining companies, have declared solutions by the use of renewable or green energy sources due to the issues related to the potential impact of technology on the environment. In May, analysts from Bank of America pointed out that the usage of Bitcoin energy has escalated more than 200% after 2019. Elon Musk, the CEO of Tesla, has also voiced concerns regarding the increasing consumption of fossil fuels by the network.
In February, the investment company applied for the approval of Bitcoin ETF under the securities regulators of Canada. The firm aims to take the assistance of the Toronto Stock Exchange for listing its product under ABTC (the ticker symbol of the exchange) to offer both Canadian as well as U.S. dollar units.
Although the United States’ SEC has not yet approved and the crypto ETFs, a green signal has already been given to several companies who have applied for Ether and Bitcoin ETFs during 2021 by the regulatory authorities of Canada.