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Brazil launches a brand new Bitcoin ETF, BUT, with a green twist

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Cryptocurrency is booming in Brazil, fueled by active day traders and investors eager to take advantage of the ongoing bull market. Even on the exchange-traded funds front, Brazil has been trending lately.

BITH11, a new exchange-traded fund (ETF) launched in Brazil by Hashdex Asset Management made headlines across the community. According to the said firm’s latest report, it brands itself as the country’s first “green” Bitcoin ETF. The report states, “…we know that the way we invest is a powerful tool to shape our future – and the tomorrow we want is sustainable.”

The so-called first “Green Bitcoin ETF” in Brazil collaborated with Germany’s Crypto Carbon Ratings Institute (CCRI), to produce annual reports estimating the energy consumption and carbon emissions underpinning the creation of BTC acquired by the fund. As mentioned on the Hashdex website,

“Hashdex Nasdaq Bitcoin ETF will reduce its carbon footprint by bearing the acquisition of carbon credits and investments in neutralizing projects. The limit for such acquisitions will be the amount equivalent to 0.15% per year of the fund’s average net worth abroad.”

Rogerio Santana, the relationship director at the São Paulo-based B3 (Brazil’s main stock exchange) shed some light on the importance of this initiative. He stated,

“The new ETF offers investors exposure to the variations of the world’s leading digital asset, with all its growth potential and store of value, in a regulated, secure and sustainable manner … With the introduction of this ETF, we will also increase B3’s range of ESG products available to the market.”

It is noteworthy that in April, Hashdex had released its first crypto-focused ETF, HASH11. Since then, HASH11 witnessed a significant rise.

Recently, green crypto funds have recently been in the limelight. Canadian Bitcoin ETF issuer, Ninepoint took similar steps. It partnered with CarbonX intending to work on the carbon footprint of its BTC funds.

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Shubham is a full-time journalist at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.