One River Asset Management, a hedge fund management company, has filed a proposal with the Securities and Exchange Commission to launch a Bitcoin exchange-traded fund with a carbon-neutral.

Hedge Fund One River Enters The Bitcoin ETF Race With A “Carbon Neutral” Proposal

It intends to cover Bitcoin’s carbon footprint by buying carbon credits equal to the trust’s projected CO2 emissions, a first for any proposed trust that gives direct exposure to Bitcoin.

According to the prospectus, One River will purchase MCO2 crypto-tokens built on Ethereum from the environmental network MOSS.Earth. Each token represents one metric tonne of CO2 reduction.

“Tokenized carbon credits are fungible and do not reflect a claim to an individual underlying carbon credit given to a single carbon reduction program. The Trust would initially purchase MCO2 tokens from Moss at pre-negotiated rates in a sum sufficient to cover the projected carbon footprint of the bitcoins in the Trust’s portfolio, to monitor the Index’s results.”

If authorized, the ETF’s shares would be traded on the New York Stock Exchange.

$1 Billion In Bitcoin And Ether Investment

One River Asset Management has purchased more than $600 million in bitcoin and ether. The Bitcoin Fund and the Ethereum Fund are the two blockchain funds managed by the business.

One River, established in 2013 by CEO Eric Peters, manages about $1.6 billion in net assets. Peters said that he founded a new company focusing on cryptocurrencies for institutional investors. Aside from the initial transactions, he stated:

“One River Digital Asset Management has made commitments that will push its Bitcoin and Ether investments to about $1 billion by early 2021.”

Northern Trust Corp. was employed as One River Digital’s fund administrator, and Coinbase was the first affiliate for transaction execution and asset custody. The funds will charge 1% in fees which will encourage investors to sell within one day.