One River Asset Management, one of the prominent hedge fund managers, has filed an application with the American SEC to launch their ETFs with a green spin.
The new offerings aim to offset the world’s most famous token’s carbon emissions by purchasing the credits that equal the emissions linked to the trust.
As per the prospectus, the firm will buy an MCO2 token for their initiative, MOSS.Earth. Interestingly, each coin represents as much as one ton of carbon emitted. It said,
Tokenized carbon credits are fungible and do not represent a claim on a specific underlying carbon credit issued to a specific carbon reduction project. The Trust will initially acquire MCO2 tokens from Moss from time to time at pre-negotiated prices in an amount sufficient to offset the estimated carbon footprint of the bitcoins held in the Trust’s portfolio, to track the Index’s performance.
If the American regulator gives the go-ahead to the proposed offering, the token will trade on the NYSE. In its quest to become regulator-friendly, the firm also hired Jay Clayton, retired head of the SEC. This comes as many other big firms, including VanEck and JPMorgan, are waiting for their ETF approval.