Frankfurt-based crypto asset manager, Iconic Funds, has announced that investors will be able to invest in its crypto ETPs in a more climate-friendly way as the firm will offset the carbon footprint of its flagship bitcoin ETP, the Iconic Funds Physical Bitcoin ETP, with project-based carbon credits.
The firm writes that this is the start of Iconic’s carbon offseting initiative: “We are committed to implementing this for future offerings as well, so that our product range becomes carbon neutral as much as possible,” says Michael Geister, Head of Crypto ETPs at Iconic Funds.
“In our understanding, this is the next stage in the evolution of an alternative, blockchain-based financial system. 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.”
“Iconic’s mission is to drive the adoption of crypto assets by creating trustworthy investment vehicles for investors to enter the evolving asset class unhindered,” says Dominik Poiger, Iconic Funds’ Head of ETP Product Management.
To this end, Iconic uses a transaction-based methodology recently developed by the Frankfurt School Blockchain Center (FSBC) to determine the carbon footprint of its bitcoin ETP. According to the methodology, the Iconic Funds Physical Bitcoin ETP generated a carbon footprint of approximately 37 tonnes of carbon dioxide equivalent (tCO2eq) over the analysed period from April 15th to June 30th 2021.
intas.tech, a spin-off of FSBC and Plutoneo Consulting, periodically recalculates the CO2 footprint for Iconic Funds so these emissions may be offset in the long term. The firm writes that this is accomplished through the purchase of CO2 certificates supporting impact-oriented projects that have been tested and certified by renowned climate and nature conservation groups.
The firm writes that one example is the Verra VCS-certified Envira project in the Brazilian Amazon basin, which aims to save up to 200,000 hectares of tropical forest from deforestation. This particular project promotes biodiversity, local communities and new jobs in sustainable agriculture and also offers further training. The project alone is expected to offset around 12.6 million tonnes of CO2 emissions within a period of 10 years.