One River Digital reports an increase in demand for carbon-neutral Bitcoin.

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One River Digital has previously applied for a carbon-neutral BTC ETF after presenting a new carbon-neutral mechanism for Bitcoin investing in April.

One River Digital Asset Management’s carbon-neutral Bitcoin (BTC) investment solution has piqued the interest of institutional investors.

One River Digital, a crypto-focused hedge fund offering exposure to Bitcoin and Ether (ETH), announced Wednesday that an “overwhelming majority of assets” in its institutional Bitcoin fund have chosen to switch to One River’s new carbon-neutrality share class.

In April, the company introduced a new system that calculates the carbon cost of Bitcoin mining and buys tokenized carbon credits in order to offset the environmental impact. Based on the estimated carbon emitted per one BTC and the market price of the offset required to neutralize that emission, the carbon cost of mining one BTC is equivalent to $55 per year, or 0.15% of the cost of one BTC. One River buys these tokenized carbon credits, validating them on a blockchain.

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According to Sebastian Bea, president of One River Digital, the increased number of institutional clients coming into One River’s carbon-neutral BTC investing might be a symptom of a larger investment trend.

“We believe it reflects a broader shift in investor preferences as transparency increases across institutional portfolios.” We are looking forwards to new opportunities as the digital asset ecosystem strives for a carbon-neutral future,” he said.

The latest news comes shortly after One River Digital filed for a carbon-neutral Bitcoin exchange-traded fund in late May. The carbon-neutral BTC ETF is designed to reflect the performance of Bitcoin on a “carbon-neutral basis” that is to offset the carbon footprint by purchasing and retiring carbon credits to cover emissions associated with Bitcoin in the trust.

One River’s carbon-neutral BTC investment tools come amid growing debate over the carbon impact of Bitcoin mining, with Tesla suspending BTC payments for its cars due to associated environmental concerns costs month. Major Bitcoin proponents like MicroStrategy CEO Michael Saylor believe that Bitcoin mining is the highest value use of renewable energy as well as the highest use of wasted or stranded energy. According to Blockcap data, Bitcoin was using less than 0.1% of human energy production worldwide as of May 2021.

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