I spoke about Valkyrie's Bitcoin EFT last week and how they're looking to create a fund that invests in the equity of bitcoin miners. One of the requirements was that 80% of the miner's revenue had to come from bitcoin mining but now they're looking to greenwash the product too.
Valkyrie Capital has also said they will launch an ETF focused on companies that use renewable energy. This will be a fund that focused on bitcoin miners who generate and use green energy from at least 77% of total emissions.
Now, this is a great PR stunt with all the climate change hysteria we have today where people claim bitcoin is boiling the oceans along with cow burps and farts, but I don't think it does much for bitcoin mining.
But I do think it limits the exposure and the upside of the investment, by excluding certain miners from your fund, miners that may be more efficient you cut yourself off from potential profits. Energy demand is not a straight line and neither is energy production, as the grid grows and becomes more diversified miners will move to different mixes and may qualify or disqualify from the ETF.
The miners are looking for the cheapest energy and products like this could limit their exploitation of imbalances in the energy market.
Investing in new energy sources
On the other hand, proponents claim that it will create an incentive to push for bringing more renewable energy online, which I don't disagree with, being a buyer of last resort and sacrificing some of your margins to bootstrap new energy sources is an admirable initiative.
Having a steady flow of income could also encourage improvement in production and research that could improve the technology and manufacturing needed to bring more green energy sources online and those are downstream effects that can benefit markets outside bitcoin.
I am not convinced about this product, but I am ALWAYS a fan of more choice, giving people more choices and allowing the market to decide where to allocate resources.
What do you think would you hedge against bitcoin with products with bitcoin adjacent exposure or do you stick to the asset? Do you think green-washed products are more than PR or do they have a competitive future?
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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