The Brazilian stock exchange B3 received another bitcoin (BTC) ETF (exchange-traded fund). BITH11, announced last week by the cryptoactives manager Hashdex, is the company’s second launch of its type and the fourth to be launched in Brazil, but it differs from the others by being the first to propose to neutralize carbon emissions related to cryptocurrencies acquired.
An ETF is essentially a type of investment fund referenced to some asset or index and traded through the stock exchange. In the case of cryptocurrencies, the financial product offers an easier option for direct investment, as it provides 100% exposure without the need to manage digital portfolios and security keys.
BITH11 is an investment fund with 100% exposure to bitcoin (BTC), but which seeks to operate in an ecologically responsible manner, given that cryptocurrency is known for its high energy consumption resulting from its mining.
Thus, the new ETF wants to neutralize the carbon emissions related to investing in bitcoin by acquiring carbon credits and investing in neutralizing projects, which could be particularly important for investors concerned about the environmental impact of the cryptoactive.
BITH11 grows 20% and already adds BRL 50 billion in equity
Called “Hashdex Nasdaq Bitcoin Reference Price”, offered under the ticker BITH11, the financial product has already appreciated by almost 20% in less than a week, since it was launched last Thursday (5th). Launched at an initial price of R$50.43 reais, its value reached R$59.45 this Monday.
For this, the German company Crypto Carbon Ratings Institute (CCRI) will be responsible for producing annual reports with calculations and estimates of energy consumption and carbon emissions related to bitcoins acquired by the investment fund.
Then, based on this data, which will be publicly released, Hashdex’s bitcoin ETF will reduce its footprint by buying carbon credits and include investments in environmental projects. However, there is a limit for these acquisitions equivalent to 0.15% per annum of the fund’s net equity abroad. The product also has a 0.7% administration fee.
Right on its debut at B3, the bitcoin fund has already attracted more than 5,000 shareholders, raising more than R$50 million. In a speech to launch the financial product on the stock exchange last Friday, the growth director of Hashdex Roberta Antunes said: “since the beginning of Hashdex, we had the goal of structuring a sustainable product”. The manager already has more than R$ 2 billion in equity and 140 thousand investors, adding its two ETFs, the BITH11 and the HASH11, launched at the beginning of the year.
With information: Nasdaq