Institutional investors have shown an increased appetite for a climate-neutral Bitcoin (BTC) investment solution from One River Digital Asset Management.
One River Digital, a cryptocurrency-focused hedge fund that offers exposure to Bitcoin and Ether (ETH), announced on Wednesday that an “overwhelming majority of the assets” of its institutional Bitcoin fund have decided to move to One River’s new climate-neutral share class.
In April, the company rolled out a new system that calculates the carbon cost of mining Bitcoin and purchases carbon credits converted into tokens to offset the impact on the environment.Â Based on the estimate of the carbon emitted by a BTC and the market price of the compensation required to neutralize that emission, the carbon cost of mining a BTC is $ 55 per year, or 0.15% of the cost of a BTC. One River buys these tokenized CO2 credits and validates them on a blockchain network.
The President of One River Digital, Sebastian Bea, said the growing number of institutional clients investing in One River’s climate-neutral BTC could be a sign of a broader investment trend.
“We believe this reflects a wider shift in investor preferences as transparency increases in institutional portfolios. We look forward to new opportunities as the digital asset ecosystem seeks a 100% carbon neutral future. “, He said.
One River Digital did not immediately respond to Cointelegraph’s request for comment.
The latest news comes shortly after One River Digital launched a climate-neutral Bitcoin Exchange Traded Fund in late May.. This fund is intended to reflect the performance of Bitcoin on a “climate neutral” basis, ie Offsetting the carbon footprint by purchasing and deducting carbon credits to cover the emissions associated with Bitcoin on a fiduciary basis.
One River’s climate-neutral BTC investment instruments take place amid a growing debate about the carbon impact of Bitcoin mining, with Tesla suspending BTC payments on its cars last month due to associated environmental concerns. The main proponents of Bitcoin, such as the CEO of MicroStrategy, Michael Saylor, believe that Bitcoin mining is the most valuable use of renewable energyand the increased use of wasted or stranded energy. According to Data from Blockcap, Bitcoin consumed less than 0.1% of human energy production worldwide in May 2021.