Accelerate will plant 3,450 trees per $1 million CA (788,200 US) of investment in The Accelerate Carbon Negative Bitcoin ETF (TSX.ABTC). Accelerate projects that each tree planted will capture 1,000 tons of carbon dioxide.
According to Accelerate’s website, the company plans to sequester ‘over 100 percent of the carbon dioxide emissions estimated to be attributable bitcoin transactions to which ABTC is indirectly exposed.
This year, Bitcoin has been criticized for its environmental impact. Bitcoin consumes approximately 116 trillion watts annually, which is 0.5% of all the world’s electricity.
Accelerate hopes that it can tap into the expanding market for ESG (environmental. social. and governance) investment products. Accelerate, which plants trees, offers tangible environmental offsets that are more tangible than ESG funds. Many of these ESG funds also buy carbon credits.
H3M Environmental Ltd. has been listed as the fund’s Environmental Advisor. This will be responsible for the ABTC’s decarbonisation efforts, including tree planting.
The fund won’t hold Bitcoin, but will provide investors exposure to Bitcoin performance via Bitcoin futures contracts that are traded on the Chicago Mercantile Exchange.
ABTC will trade on Tuesday at the Toronto Stock Exchange. There is a 0.69% management fee. As the principal portfolio manager, Julian Klymochko (President, Director, CEO, and CIO at Accelerate) will be responsible for managing and advising the fund.
In February, Canada launched the Purpose Bitcoin ETF (TSX.BTCC.B), its first Bitcoin ETF. The Purpose Bitcoin Exchange Trade Fund (TSX:BTCC.B) is physically backed. This means that the fund can hold Bitcoin directly. Since its inception, the fund has managed an impressive $1.1 trillion.