Bitcoin ETP set to debut on European exchange- Decoding details
Toronto-based Valor 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 exchange.
About the company
According to the press release, Valor Inc. was founded in 2019 and is the first and only listed company that “bridges traditional capital markets and decentralized finance”. The company aims to give its customers access to the “future of finance” or web3 and decentralized technologies.
The BTC Carbon Neutral ETP will be the eleventh ETP offering from Valor and trading of the product will begin.
Through its BTC Carbon Neutral ETP, Valor aims to provide clients with an investment product that is sustainable and in line with ESG goals. According to the company, this benefits the environment while offsetting the carbon footprint associated with Bitcoin.
Russell Starr, CEO of Valor stated: “As a proud signatory to the Crypto Climate Accord, Valor takes its ESG commitments seriously. We want to give both private and institutional investors the tools to participate in the exciting digital asset ecosystem, and we are very proud to offer our first carbon neutral product.”
More about ETP
Investing in 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 Valor has partnered with for this ETP.
To facilitate Valor’s carbon neutral goals, Valor will select projects, and ensure (that) they have been controlled by qualified and recognized organizations and standards. Factors considered by Patch when selecting projects include additionality, real and verifiable duration.
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 carbon emissions data at a national level.
Growing interest in ETPs
Large 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. The banks’ clients will have the opportunity to add Valour’s ETPs, such as Bitcoin Zero and Ethereum Zero, to their investment portfolios.
August 24, Valor announced that it will launch 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 cryptos such as Bitcoin, which are often seen as an energy-intensive resource. The growing popularity of sustainable crypto-related products will do much to repair the industry’s image.
