The carbon footprint of Bitcoin has been a source of concern for a while. One Canadian asset management firm is taking proactive measures to mitigate this problem. Ninepoint, a Canadian alternative management fund, has announced that it will be using a portion of its management fee to offset BTC’s carbon footprint in its ETF.
In its bid to make its Bitcoin ETF carbon-neutral, Ninepoint has announced that it was partnering with CarbonX. CarbonX is a fintech company that analyzes carbon emissions and helps companies offset their carbon output.
The firm, alongside The Crypto Carbon Rating Institute, will help Ninepoint carry out scientific estimates on the energy consumption of cryptocurrencies. CarbonX will also provide solutions that Ninepoint can use to make its ETF carbon neutral. Some of the solutions include Amazon-based schemes to lower the amount of CO2 reaching the atmosphere.
According to Ninepoint’s managing director of Digital Assets, Alex Tapscott, about 50% of the energy used in Bitcoin mining comes from renewable energy sources. However, 50% of it coming from polluting energy sources is still a huge number.
Tapscott added that until Bitcoin is generated from 100% renewable energy, every player in the asset management industry has some work. He said that by shifting the focus to 100% renewable energy, Bitcoin ETFs would be in a position to attract a broader array of investors, especially the climate-conscious.
This is a big move by Ninepoint, which up until its conversion into an ETF, was a closed investment fund with over a quarter billion dollars in assets.