Brazil’s Carbon Neutral Bitcoin ETFs Follows a Growing Trend of Green Crypto Funds

According to a forecast by Anthony Scaramucci who is the founder of Skybridge (a global investment firm) the Bitcoin mining industry “will be fully renewable by the end of the decade.”

This comes at a time when Hashdex, a crypto-focused investment firm based in Brazil, has pledged to make its new Bitcoin (BITH11) ETF “carbon neutral.”

The Brazilian firm is a leading pioneer in the crypto sector, especially in the realm of crypto ETFs, as it was the first company in Brazil to allow institutional investors exposure to the crypto space through Bitcoin ETFs.

Just recently, Hashdex announced that it plans to invest a portion of its asset under management into carbon credits and green tech. According to a report by Cointelegraph, the firm plans to neutralize the carbon emissions associated with its Bitcoin ETFs by purchasing carbon credits.

HashDex plans to form a partnership with Germany’s Crypto Carbon Rating Institute. Through the partnership, Hashdex will be able to estimate the energy consumed and the carbon emissions produced by the underlying amount of Bitcoin in its ETF.

Hashdex’s application to launch a crypto ETF in Brazil received a stamp of approval from the country’s regulators, leading to a new milestone for the crypto market at large in the country.

In addition to the Bitcoin ETF, Brazillian regulators also gave the green light to another crypto ETF composed of a basket of five currencies, including Bitcoin. Both ETFs are traded on the Brazill stock exchange as stakeholders continue to celebrate the milestone.

Rising energy consumption concerns

According to a report by the Bank of America, the global Bitcoin industry produces an overall CO2 emission of about 60 million tons equal to about 9 million cards. 

As concerns about Bitcoin’s energy consumption continue to rise, a variety of solutions have emerged. El Salvador for instance has moved to not only declare Bitcoin a legal tender but also explore the use of its volcanoes in Bitcoin mining.

Although institutional adoption of Bitcoin and cryptocurrencies at large reached a fever pitch in 2021, most players have remained hesitant, citing concerns about blockchain’s carbon emissions and its effects on the environment.

More institutional players are, however, joining the fray to solve Bitcoin’s carbon neutrality as it will affect the entire crypto market at large.

A Wave of Green Crypto Investment Firms

In addition to Brazil’s Hashdex move to promise a new era of carbon-neutral Bitcoin ETFs, Scaramucci’s SkyBridge Capital has partnered with carbon credit provider MOSS Earth in solidarity with other crypto funds to purchase carbon credits.

Other crypto firms that have since moved to purchase carbon credits include Gemini, FTX, and BitMEX

Following Elon Musk’s tweet about Tesla’s decision to halt acceptance of BTC as payment due to rising concerns about the network’s carbon emissions, the crypto market crumbled, leading to a ripple effect that stifled adoption.

Companies such as Hashdex and Skyridge Capital are moving towards increasing acceptance of Bitcoin as an investment alternative.

However, while Hashdex has seen the approval of its application to launch a crypto ETF in Brazil, Skyridge Capital’s application for a Bitcoin ETF remains pending even after rounds of application with U.S regulators.


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