Brazil is rapidly moving towards new investment opportunities related to digital assets. This week, a new Bitcoin-ETF was launched in the country – based on “green” technologies.
BITH11 is a new exchange-traded fund (ETF), the brainchild of alternative investment company Hashdex Asset Management.
This is the second Bitcoin-ETF, approved in Brazil.
It is a direct competitor to the previously launched QR CME CF Bitcoin Reference Rate or QBTC11.
The new green Bitcoin ETF: what is its essence
The Hashdex offer differs from the competitive one (from QR Assets) in that it aimed at neutralizing carbon dioxide emissions from investments in Bitcoin.
So, fund management company Hashdex Asset Management claims this is the first green Bitcoin ETF.
The fund will maintain its “green neutrality” through purchases of CO2 credits. For this, Hashdex will use audits by the German Cryptographic Ratings Institute (CCRI). The institution will issue an annual report on how much CO2 released into the atmosphere while creating the Bitcoins held in the fund. The BITH11 managers plan to annually invest 0.15% of the fund’s assets in the purchase of quotas and in the development of environmentally friendly technologies.
Rogerio Santana, director of B3 (Brazil’s main stock exchange), noted the importance of this initiative. He noted that BITH11 will contribute to a positive impact on the entire ecosystem. This is the second ETF, managed by Hashdex.
The first ETF, called the Hashdex Nasdaq Crypto Index (HASH11); it tracks a basket of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Bitcoin Cash (BCH) and Stellar Lumens (XLM).
In addition to Bitcoin ETF, the country approved the first Ethereum ETF from a competitor Hashdex – QR CME CF Ether Reference Rate (QETH11) from QR Assets a few days ago. Thus, these two companies took control of the Brazilian crypto ETF market.
The crypto ecosystem is growing
Brazil has a fairly strict regulatory system regarding crypto investments, but the country has a positive attitude towards cryptocurrencies and only offers their regulation instead of prohibiting them, as it done in some other countries.
Against this backdrop, the ecosystem of cryptocurrency service providers in Brazil is only growing.
There are many services that allow users to have a free bank account with the ability to buy and sell Bitcoin at market prices. For example: Z.ro Bank, Alter and Uzzo Pay. In addition, users can pay with fiat currency, which stored on their prepaid credit cards.
In addition, the popularity of cryptocurrency exchanges has increased in Brazil. It should be noted that Binance continues to lead the way despite recent events.
Recall that the popularity of green cryptocurrency funds is only growing this year. As concerns about the environmental side of cryptocurrency mining are growing, the topic is getting a lot of media coverage. In May, Canadian company Ninepoint announced plans to offset the carbon footprint of its BTC fund by partnering with carbon offset service provider CarbonX. Later, cryptocurrency hedge fund One River Digital reported a surge in demand for zero-carbon Bitcoin investment products. BITH11 has now joined this green initiative.