Bitcoin ETP set to debut on European stock exchange- Decoding details
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Toronto-based Valor Inc. (formerly DeFi Technologies Inc.) has been set debut its Bitcoin Carbon Neutral Bitcoin Exchange Traded Product (ETP) on Börse Frankfurt, Germany’s largest exchange.
About the company
Founded in 2019, Valor Inc. is the first and only publicly traded company that “bridges the gap between traditional capital markets and decentralized finance,” according to a press release. The company aims to offer its customers access to the “future of finance”, i.e. web3 and decentralized technologies.
The BTC Carbon Neutral ETP will become Valor’s eleventh ETP offering, and the product will begin trading.
Through the BTC Carbon Neutral ETP, Valor intends to offer clients an investment product that is sustainable and in line with ESG goals. According to the company, this benefits the environment and offsets the carbon footprint associated with Bitcoin.
Russell Starr, CEO of Valor, said: “As a proud signatory to the Crypto Climate Accord, Valor takes its ESG obligations 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
Investments in ETP finance certified carbon removal and compensation initiatives with a low management fee of 1.49 percent. This is achieved through Patch, a climate action infrastructure provider that Valor has partnered with on this ETP.
To further Valour’s carbon neutral goal, Valor selects projects and ensures (that) qualified and recognized organizations and standards have audited them. Factors that Patch considers when selecting projects include complementarity, real and verifiable sustainability.
Patch further evaluates the carbon footprint of Valour’s portfolio by looking at factors such as mining rig efficiency, distribution of hashing power, and national carbon emissions data.
Growing interest in ETPs
Large German banks Comdirect and Onvista announced last month when Valour’s ETPs and other crypto products are made available to their retail clients in Germany. Bank clients 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 the Binance Coin ETP on the Frankfurt Stock Exchange. This ETP tracks the price of BNB. According to Valour’s website, the current fair value of ETP is 2.805 euros
Such products benefit the broader crypto industry as they not only expose institutions to crypto products, but also provide an environmentally conscious way to invest in crypto assets such as Bitcoin, which is often considered an energy-intensive commodity. The growing popularity of durable crypto-related products is doing a lot to improve the industry’s image.