Helveteq, a Swiss issuer of ESG-transparent investment products, has debuted a pair of digital asset ETPs providing carbon-neutral exposure to bitcoin and ether.
Christian Katz, CEO of Helveteq.
The Helveteq Bitcoin Zero ETP (BTCO2 SW) and Helveteq Ether Zero ETP (ETH20 SW) have been listed on SIX Swiss Exchange in US dollars.
BTCO2 and ETH20 offer institutional investors easy access to bitcoin and ether through liquid, regulated vehicles without the technical challenges of setting up private keys or crypto wallets.
They use full direct, ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in bitcoin or ether which is stored using an institutional-grade cold-storage custody solution provided by Bitcoin Suisse.
Each ETP comes with a management fee of 1.69%.
The environmental impact of digital assets has shifted into the mainstream consciousness in recent years. In particular, proof-of-work networks such as Bitcoin and Ethereum have been found to be very energy-intensive, resulting in massive CO2 emissions.
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Research on the exact carbon footprint of blockchains is a relatively novel field. Complicating the creation of a commonly agreed framework is the diverse energy mix used by network participants, the different consensus mechanisms applied, and the various ways different blockchains incorporate growth, new wallets, and new transactions.
Seeking clarity on these issues, Helveteq has partnered with the Swiss FinTech Innovation Lab of the Institute for Banking and Finance at the University of Zurich which uses its extensive blockchain research capabilities to assess the carbon footprint of networks such as Bitcoin and Ethereum.
Based on the Lab’s findings, Helveteq will offset all of the ETPs’ relevant carbon dioxide emissions by purchasing and retiring Certified Emission Reductions (CERs) issued by the United Nations’ carbon offset platform. Each CER represents the sequestration of one metric tonne of CO2 through carbon removal projects set up in developing countries.
Commenting on the launch, Christian Katz, CEO of Helveteq, said: “It is time to offer investors the first carbon-neutral crypto ETPs by a Swiss issuer. Awareness of the link between the environment and the blockchain economy is rising fast, and we all must work together to find sustainable solutions.”
While carbon-neutral crypto ETPs are still relatively rare, Europe’s largest bitcoin ETP – the $680m BTCetc – ETC Group Physical Bitcoin (BTCE GY) – also offers this service. BTCE comes with an expense ratio of 2.00%.