Brazil Lists Another Bitcoin ETF, First Carbon-Neutral

Hashdex launched its newest bitcoin ETF in Brazil, another addition to the country’s diverse bitcoin ETF menu and the first to be carbon neutral.

Investment firm Hashdex has announced its newest bitcoin exchange-traded fund (ETF) offering in Brazil, BITH11. The investment vehicle provides bitcoin exposure to retail investors by tracking the Nasdaq Bitcoin Reference Price (NQBTC).

“In addition to being an asset of great technological importance, Bitcoin is now considered by many as a potential store of value,” the announcement read. “Its predictable monetary base, the security of its decentralized network and its low-correlation with other asset classes have caught the attention of…renowned investors in the traditional finance market, who, along with the growth of the network, has made Bitcoin appreciate in value by thousands of times in the past decade.”

Shares of the BITH11 ETF track the bitcoin market price as reflected by the NQBTC, in Reais, Brazil’s national fiat currency, minus fees and expenses. The fund invests in shares of the Hashdex Nasdaq Bitcoin (HNB) ETF, a wholly-owned fund established in the Cayman Islands and listed on the Bermuda Stock Exchange (BSX). The HNB ETF invests in bitcoin through spot and futures positions to track the NQBTC – a benchmark developed by Nasdaq to reflect the bitcoin market price in dollars.

Hashdex currently has six fund offerings and over $600 million in assets under management (AUM). However, BITH11, which incurs administration fees of 0.3% a year, is not Brazil’s first, as QR Capital launched a 100% bitcoin ETF in March 2021.

But BITH11 is the first carbon-neutral bitcoin ETF in Brazil. Hashdex said it would work with german carbon rating company CCRI to estimate the carbon footprint of all bitcoin acquired by the HNB ETF – the fund BITH11 invests in. The investment manager said it would then purchase carbon credits and invest in carbon-neutralizing projects to offset its carbon footprint, limited to a yearly sum of 0.15% of HNB’s liquid assets total value.

Carbon-neutrality is currently in vogue, especially when it comes to Bitcoin. However, Bitcoin is not harmful to the planet. It is uniquely positioned to help the entire world employ clean energy sources more widely, as well as help fossil-fuel-powered energy producers leverage stranded energy and capture pollutant waste, thereby increasing efficiency and reducing emissions.


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New Brazilian Bitcoin ETF pledges carbon neutrality

BITH11, a new exchange-traded fund (ETF) launched in Brazil by crypto-focused alternative investment firm Hashdex Asset Management, claims to be the country’s first “green” Bitcoin ETF.

The fund plans to neutralize its associated carbon emissions through purchasing carbon credits. To meet the ETF’s objectives, Hashdex has partnered with Germany’s Crypto Carbon Ratings Institute (CCRI) — which will produce annual reports estimating the energy consumption and carbon emissions underpinning the creation of BTC acquired by the fund.

The ETF is currently aiming to invest 0.15% of its liquid assets into carbon credits and eco-friendly technologies every year. The fund was launched on the B3 Brazilian Stock Exchange late last week under the ticker BITH11.

According to a rough translation, Rogerio Santana, relationship director at the São Paulo-based B3 exchange, stated:

“The new ETF offers investors exposure to variations in the world’s main digital asset, with all its growth potential and value reserve, in a regulated, secure manner and under sustainability goals,”

Hashdex is an issuer of regulated crypto investment funds, having launched its first crypto-focused ETF, HASH11, in April of this year. Over the past month, HASH11 has gained 33% according to Bloomberg.

In addition to HASH11 and BITH11, Hashdex also offers a weighted Nasdaq Crypto Index (NCI) fund tracking BTC, and its Bitcoin Risk Parity Gold Fund.

Related: SkyBridge buys 38,500 tons of carbon offsets

Green crypto funds have grown in popularity this year as concerns over the fossil fuel-based energy consumption of crypto mining operations entered mainstream discourse.

In May, Canadian Bitcoin ETF issuer, Ninepoint, announced plans to offset the carbon footprint of its BTC fund, partnering with carbon offsetting service provider CarbonX.

The following month, crypto-focused hedge fund manager One River Digital reported a surge in demand for carbon-neutral Bitcoin investment products.

On August 3, Global investment firm SkyBridge Capital announced that it had partnered with carbon credit provider MOSS Earth to purchase tokens representing 38,436 tons of carbon offsets.