Canada-based investment provider Accelerate Financial Technologies Inc. has launched a carbon-negative Bitcoin ETF.
The trees planted will help sequester 1,000 tons of carbon dioxide
Accelerate plans to plant 3,450 trees for every $1 million CA ($788,200 US) invested in the Accelerate Carbon-Negative Bitcoin ETF. The company estimates that each batch of trees planted will help sequester 1,000 tons of carbon dioxide.
The company intends to “sequester more than 100% of the estimated carbon dioxide emissions attributable to Bitcoin transactions to which ABTC is indirectly exposed.”
The fund does not hold Bitcoin directly and instead offers investors exposure to Bitcoin’s performance. It will do so through Bitcoin futures contracts traded on Chicago Mercantile Exchange.
H3M Environmental Ltd. will be the fund’s Environmental Advisor and will be responsible for ABTC’s decarbonization initiatives, including tree planting.
A step in the right direction for Bitcoin’s attitude
The plan to plant trees is an important step in “correcting” many investors’ opinions about Bitcoin’s environmental friendliness. Many people have criticized Bitcoin this year for its negative impact on the environment. Elon Musk, for example, said Tesla will start accepting Bitcoin payments again when miners start using more renewable energy.
The Bitcoin network uses about 116 trillion watts per year or about 0.5% of the world’s total electricity. Many companies in the crypto and blockchain industry, including mining companies, have announced solutions that use green or renewable energy sources due to ongoing concerns.