Ninepoint Partners LP, one of the publicly traded issuers of Bitcoin (BTC) in Canada, has announced plans to offset the carbon footprint of its BTC ETF product.
According to a press release published on Monday, Ninepoint has entered into a partnership with the carbon offset service provider CarbonX. As part of the partnership, Ninepoint will use an undisclosed portion of its management fees to purchase carbon credits to offset the environmental impact of the Bitcoin mining process of the BTC held in its fund.
As previously reported by Cointelegraph, Ninepoint announced plans in March to convert its Bitcoin trust into an ETF. The fund’s prospectus was filed with regulators the following month.
As part of the partnership, the Crypto Carbon Ratings Institute will also provide scientific estimates of energy consumption in Bitcoin mining. The carbon credits purchased will reportedly be used for environmental protection efforts in the Amazon forest.
Alex Tapscott, managing director of digital assets at Ninepoint, commented on the reasons for this move to Bloomberg:
“Some investors who are concerned about the carbon footprint of mining may be cautious about investing in a Bitcoin ETF. We create a solution to this problem and give them the choice they want and honestly need. “
In fact, the “ocean boiling tale” continues to be associated with bitcoin mining, with critics citing the high energy consumption of mining companies around the world. In early May, the New York State Senate passed a bill banning BTC mining in the state for three years because of energy problems.
From China to Iran, miners are facing ever tighter regulatory controls over power consumption and environmental impact. On the other side of the argument, Bitcoin proponents say miners are becoming the last resort buyers for renewable energy producers.