One River, a management firm specializing in digital assets, has now filed for a BTC exchange-traded fund (ETF) which is said to cover the blockchain mining-based emissions via the utilization of carbon credits. The ETF is also stated to be carbon neutral.
The S-1 filing that had originally been submitted yesterday has the potential to compensate for Bitcoin’s controversial carbon emissions through the purchasing and subsequent disposal of the abovementioned carbon credits. It should be mentioned, though, that the firm will not be providing any kind of direct exposure to BTC, as it instead plans to have associations with various 3rd parties in an attempt to have the asset be offered via the selling as well as redeeming of the shares.
Partnership with Moss Earth
Keeping the abovementioned information in mind, One River has announced that it will be working alongside Moss Earth, a firm based in Uruguay, in a continued effort towards buying blockchain tokens which shall be utilized to provide proof of the decrease in carbon emissions. Furthermore, the carbon credits will also be made visible and transparent via one of Verra’s registries. Lastly, Coinbase has been announced as the official custodian as far as the BTC assets are concerned.
Additionally, another benefit of the filing would be that Jay Clayton, former Chairman of the SEC, will be acting as one of the firm’s advisers, with his experience in the crypto markets as well as impeccable knowledge of how regulations work potentially proving to be invaluable to One River for the future.
The filing had been conducted as a result of the increasing demand for the excess energy consumption being generated by Bitcoin to be addressed. Elon Musk of Tesla had also recently stated that the company won’t accept payments made in BTC from now on due to environmental and energy-related concerns stemming from the world’s flagship cryptocurrency.
Regulations being carefully considered by U.S regulators
The SEC has not yet approved a BTC ETF, despite the fact that numerous filings had been made since the previous year. The reason why the SEC has been reluctant to grant the approval is largely due to mounting concerns about market manipulation as well as investor protection. The formation of any kind of viable framework is hence taking time to be properly established. It would seem.
If it were to be approved, however, then a potential Bitcoin ETF could grant investors the opportunity to have increased exposure towards cryptocurrencies through the listing on any given stock exchange. While this may certainly be an important step as far as the market is concerned, the ever-present volatility might, however, be too much to handle for the everyday retail investor who may have little to no experience with the cryptocurrency market.