Institutional investors are showing stronger appetite for One River Digital Asset Management's carbon-neutral Bitcoin ( BTC ) investment solution.
One River Digital, a cryptocurrency-focused hedge fund offering exposure to Bitcoin and Ether ( ETH ), announced Wednesday that the "overwhelming majority of assets" in its institutional Bitcoin fund have opted to switch to One River's new carbon-neutral share class.
In April, the company introduced a new system that calculates the carbon cost of bitcoin mining and buys tokenized carbon credits to offset the environmental impact. Based on the estimated carbon emissions per BTC and the market price of the offset required to neutralize those emissions, the carbon cost of mining one BTC is $55 per year or 0.15% of the cost per BTC. One River purchases these tokenized carbon credits by verifying them on the blockchain.
One River Digital CEO Sebastian Bea said the growing number of institutional clients moving to One River's BTC-neutral investments could signal a broader investment trend.
"We believe this reflects a broader shift in investor preferences as transparency in institutional portfolios increases. We look forward to further opportunities as the digital asset ecosystem seeks a 100% carbon neutral future," he said.
