The European Union presents a package of measures for sustainable finance. ETC Group is not the only institution to react to Musk’s tweets.

ETC Group announced that it would finance the projects to make its Bitcoin exchange-traded product (ETP) the first ETP to offset its carbon footprint, without affecting the asset and its price. The release will take place on July 7.

The company’s co-founder and CEO, Bradley Duke, explained that, although they were already working on the project, Elon Musk’s tweets accelerated it. In the wake of these messages, the demand for carbon-free BTC has been increasing.

With his tweets, Musk let users know that, more than a month ago, the electric car company Tesla stopped accepting bitcoin as payment until the miners’ emissions apply the proper reduction of 50%, which is a positive trend towards the future.

Also, there is the fact that the European Union has become more demanding regarding the environment, since as of March 2021, the Sustainable Finance Disclosure Regulation (SFDR) entered into the game in the European Union, imposing strict environmental, social, and governance disclosure requirements to institutional investors.

For its part, ETC Group reported in the statement that it would buy manually selected high-quality carbon credits to cover CO2 emissions that come from mining and transactions of its product. According to the report, the credits will help many projects from the world’s most respected conservation and climate groups.

Duke said that Companies that benefit from cryptocurrencies like bitcoin should consider and take meaningful steps to address climate concerns. Bitcoin miners are now getting more and more renewable electricity, which is good for the environment.

ETC Group is the cryptocurrency investment company that handles the highest volume physically-backed bitcoin ETP (BTCE) in Europe. Its product has been listed on the German stock exchange Deutsche Börse XETRA since June 2020, right after being authorized by BaFin, the regulator in that nation.

 Elon Musk and his tweets Created a Wave of Response

Other companies reacted with direct action after the tweets. Gemini of the Winklevoss brothers launched Gemini Green to purchase carbon permits and offset the dirty emissions of Bitcoin.

In recent months, the possible environmental impact that the mining of bitcoin could generate has attracted attention on social networks and other media, creating criticism and conflicting opinions. Although this topic has been under discussion for years, it has recently taken on new dimensions.

These tweets may be inciting mining entrepreneurs to come out and defend the bitcoin position on this issue in the framework of the Bitcoin Conference 2021 in Miami, United States of America.

Trading in OTC markets has been, perhaps, one of the most suitable alternatives for Chinese investors. Although the crackdown on miners happened, this route facilitated the exchange between the renminbi (RMB), with tether (USDT). The stable coin could face its deposit on exchanges and serve for cryptocurrency trading.

By: Jenson Nuñez

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