Viridi Funds, the fund manager has recently announced that it has launched the first bitcoin crypto mining investment product. The product is called the Viridi Cleaner Energy Crypto Mining & Semiconductor ETF (RIGZ). They will trade it soon on the NYSE (New York Stock Exchange). This new product was launched as an actively managed ETF.
Crypto Mining ETF Can Be An Alternative
According to a report from a press release, the company will invest in several other crypto mining firms. It will also invest in mining infrastructure industries. Viridi Funds wants ETF in the first place so that they can meet the high requirements of investors. Most of them are searching for Bitcoin exposure within regulated markets. Additionally, this product will allow all the investors to support and also commit to environmental sustainability. According to the statement given by the company, “Bitcoin mining is a sector that is particularly well suited to such an investment product as, according to recent figures, over 50% of North American bitcoin mining is done using renewable energy sources, which is a trend that Viridi hopes to encourage through products like RIGZ.”
Apart from all the companies and investors, this ETF product also targets the producers of semiconductors and specialized computer chips. It also includes the manufacturers of crypto mining hardware, necessary tools for bitcoin mining, and mining firms that have long-term energy off-take agreements. Further, according to the press release, they will not be using funds directly to invest in different cryptocurrencies.
Wes Fulford is the CEO of Viridi Funds. He firmly believes that nowadays bitcoin is growing rapidly thus seeing new institutional interest and support every day. Besides, he also added to his statement saying, “We launched RIGZ to provide investors with an ETF that attempts to align purpose and profit by investing in the infrastructure that underpins the entire ecosystem with sustainability in mind. Miners provide an essential service to cryptocurrency networks, and leading operators are able to generate Bitcoin and other cryptocurrencies at a fraction of prevailing market prices.”
Institutions Can Benefit From More Options To Gain Bitcoin Exposure
This crypto-mining ETF product from Viridi has not faced any problems in lacking a sufficient amount of financial backing. Many important groups and companies in the crypto industry helped the product. The companies included Alameda Ventures, Luxor Technology, Fundamental Labs, Mechanism Capital, and CoinShares. As a matter of fact, CoinShares even led a funding round for the investment of the product. CoinShares CSO Meltem Demirors declared in her statement that the funding round will benefit the investors with even more opportunities. Thus they can positively gain an active exposure to the Bitcoin value chain. In simple words, all the investors can “realize more upside”. And, this is possible only if they hold a share in a key part of the infrastructure along with the underlying asset, BTC.
Because of its unique design, miners can never produce more Bitcoins than the block size rewards. This is why Meltem Demirors believes that it is a tough task in the crypto market to lower the cost of producing the cryptocurrency. It is also tough to use low-cost energy sources and reduce the Capex drag of hardware. Besides, the bitcoin mining sector is also now focusing more on working with renewable sources of energy. However, some of the narratives have spread the opposite of this in the common media. Data indicates that almost 50% of bitcoin miners in North America have been using renewable sources of energy. This makes BTC one of the greenest industries” in the U.S.
Lastly, Demiros said, “As one of the world’s largest digital asset managers, CoinShares is proud to be Viridi’s lead investor, and to continue to expand the universe of crypto investment products with innovative partners like Viridi Funds, 3iQ Digital Asset Management, and Invesco EMEA.”
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