Bitcoin ETP set to debut on European stock exchange- Decoding details

Toronto-based Valour Inc. (formerly known as DeFi Technologies Inc.) is set to debut its Bitcoin Carbon Neutral Bitcoin Exchange Traded Product (ETP) on Börse Frankfurt, Germany’s largest stock exchange.

About the company

According to the press release, Valour Inc. was founded in 2019 and is the first and only publicly traded company that “bridges the gap between traditional capital markets and decentralized finance”. The company aims to grant its clients access to the “future of finance” or web3 and decentralized technologies.

The BTC Carbon Neutral ETP becomes the eleventh ETP offering by Valour and trading for the product will begin.

Through its BTC Carbon Neutral ETP, Valour intends to give clients an investment product that is sustainable and aligned with ESG goals. According to the company, this benefits the environment while offsetting the carbon footprint associated with Bitcoin.

Russell Starr, CEO of Valour stated, “As a proud signatory on the Crypto Climate Accord, Valour takes its ESG obligations seriously. We want to give retail and institutional investors, alike, the tools to partake in the exciting digital asset ecosystem and we are very proud to offer our first carbon neutral product.”

More on the ETP

Investment in the ETP will fund certified carbon removal and offset initiatives at a low management fee of 1.49%. This will be achieved through Patch, a climate action infrastructure provider that Valour has collaborated with for this ETP. 

In order to facilitate Valour’s Carbon Neutral aim, Valour will select projects, and ensure (that) they have been vetted by qualified and recognized organizations and standards. Factors that are considered by Patch while selecting projects include additionality, real and verifiable permanence.

Patch will further evaluate the carbon emissions in Valour’s portfolio by looking at factors such as the efficiency of mining equipment, distribution of hash power, and nation-level carbon emission data.

Increasing interest in ETPs

Major German Banks Comdirect and Onvista announced last month that Valour’s ETPs and other crypto products will be made available to their retail clients in Germany. Clients of the banks will have the option to add Valour’s ETPs like Bitcoin Zero and Ethereum Zero, into their investment portfolios. 

On 24 August, Valour announced that it will be launching its Binance Coin ETP on the Frankfurt Stock Exchange. This ETP tracks the price of BNB. According to Valour’s website, the current fair value for the ETP is €2.805

Such products benefit the broader crypto industry by not only exposing institutions to crypto products but also providing an environmentally conscious way to invest in crypto like Bitcoin which is often seen as an energy-intensive asset. The rising popularity of sustainable crypto-related products will do a lot to repair the industry’s image.