According to the latest reports, Ninepoint Partners LP has made a bold announcement in regards to the Bitcoin Exchange Traded Fund product. Ninepoint Partners LP has announced that it is planning to shed off the BTC ETF products that have carbon footprints in them.
Ninepoint Partners LP is a prominent exchange-traded fund (ETF) issuer for Bitcoin (BTC), based in Canada.
Following its initial announcement, expressing its intentions, Ninepoint Partners LP has made another announcement on Monday, May 10. The BTC ETF issuer has announced that in order to offset the carbon print from its BC ETF products, it has collaborated with CarbonX. CarbonX is an offsetting service provider for carbon.
Ninepoint Partners LP has announced that as part of the collaboration, it will be dedicating some portion of its management fees, which is currently undisclosed. The firm is yet to reveal how much of the management fees will be dedicated to the collaboration.
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Ninepoint will be using these management fees in an attempt to neutralize the impact of the mining process of Bitcoin on the environment by purchasing carbon credits. These carbon credits are currently available in the funds for Bitcoin (BTC) that were acquired via mining.
Prior to the latest announcement, Ninepoint had previously made an announcement where it claimed to shift to a Bitcoin exchange-traded fund (ETF). At that particular time, Ninepoint Partners LP was operating as a Bitcoin (BTC) trust.
Their partnership would also see that CarbonX provides scientific estimation on the energy consumption for Bitcoin (BTC) mining. The firm has announced that once the carbon credits are acquired, they will be spent for Amazon forest’s conservation and welfare.
The managing director of digital assets at Ninepoint, Alex Tapscott talked about the motives behind the company’s recent move.
Alex Tapscott stated that in the past 12 months, the process of Bitcoin (BTC) mining is trending. Several countries and companies from around the world are mining Bitcoin (BTC) as the BTC markets started rallying.
This is when the majority of the mainstream institutions, as well as investors, have started siding with Bitcoin (BTC) that are mined through environment-friendly energy sources.
Based on the above situation, Ninepoint is well aware that many investors will not become part of the BTC ETF because of the same reason. On the other hand, Ninepoint itself aims to carry out mining activities that are carbon-free and are mined through environment-friendly energy sources.
Therefore, the recent move made by Ninepoint would serve as one of the most critical and needed moves in order to gain the trust of investors.
For them, it is the need and preference of the investors they need to cater, and offsetting carbon credits would be the first and foremost step in the process.