Ninepoint will allocate part of its management fees to even out the carbon footprint of Bitcoin in its exchange-traded fund product.
According to a release issued on Monday, Ninepoint Partners LP, one of Canada’s Bitcoin (BTC) exchange-traded fund issuers, has joined a partnership with carbon offset service provider CarbonX.
As per the announcement, Ninepoint will use a certain proportion of its undisclosed management fee to acquire carbon credits in order to neutralize the environmental impact of the Bitcoin mining process of the digital asset held in its fund.
As per the previous reports of March, Ninepoint declared its roadmap to convert its BTC trust to an ETF, with the fund’s prospectus filed with regulators in the month to come.
The partnership between Ninepoint Partners LP and CarbonX will also consider the Crypto Carbon Ratings Institute providing a scientific guesstimate on energy consumption of Bitcoin mining. The purchased carbon credits will reportedly be channeled toward conservation efforts in the Amazon forest.
Alex Tapscott, managing director of digital assets at Ninepoint, while stating the reasons behind the move, Commented,
The “ocean boiling narrative” stays to correspond with Bitcoin mining. With detractors looking at the high levels of energy consumption of mining establishments around the world. Earlier in May, a bill was introduced to the New York State Senate seeking to ban BTC mining in the state for three years over energy concerns.
From China to Iran, Crypto miners are facing an increased oversight in swelling electricity consumption and associated impact on the environment from regulators.