Industry Updates

Iconic Funds to carbon offset bitcoin ETP

XBTI will purchase carbon credits to offset its carbon footprint

Theo Andrew


Crypto specialist Iconic Funds has become the latest issuer to implement a carbon offsetting initiative for its bitcoin exchange-traded product (ETP).

The Iconic Funds Physical Bitcoin ETP (XBTI) will use a transaction-based methodology to determine its carbon footprint, which it will then offset through the purchase of carbon credits.

Under the methodology, developed by Frankfurt School Blockchain Centre (FSBC), XBTI generated a carbon footprint of 37 tonnes of carbon dioxide between 15 April and 30 June.

Iconic Funds will have its Co2 footprint periodically recalculated by, a spin-off of FSBC and Plutoneo Consulting, that will ensure its emissions are offset over the long term. 

In order to achieve this, Iconic Funds will purchase carbon dioxide certificates that support impact-orientated projects, including the Verra VCS-certified Envira project in the Brasilian Amazon basin which aims to save 200,000 hectares of tropical forest from deforestation.

Michael Geister, head of crypto ETPs at Iconic Funds, commented: “We are committed to implementing this for future offerings as well so that our product range becomes carbon neutral as much as possible.

“As an ETP issuer, we want to facilitate climate-smart investing in crypto assets. The consumption-oriented, transaction-based methodology is currently the most transparent method for holders of Bitcoin and users of corresponding blockchains.”

The move comes after the firm launched XBTI in May, listing it on the Deutsche Boerse with a total expense ratio of 0.95%.

In July, ETC Group became the first issuer to offset its carbon emissions on a crypto ETP, doing so on the $1.5bn BTCetc Bitcoin Exchange Traded Cryptocurrency (BTCE).

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