Key Takeaways
- • On August 29, 2023, the U.S. Court of Appeals for the D.C. Circuit sided with Grayscale Investments in its lawsuit against the SEC, requiring the SEC to review Grayscale's application to convert the Grayscale Bitcoin Trust into an exchange-traded fund.
- • Greenpeace USA urged financial institutions to conduct due diligence on Bitcoin's climate risk before backing Bitcoin ETFs, arguing the ruling could enable products that undermine climate goals.
- • Greenpeace cited Bitcoin's energy consumption, which it said rivals that of entire countries and is largely derived from fossil fuels such as coal, oil, and gas.
- • Greenpeace criticized Jacobi Asset Management's ESG-labeled Bitcoin ETF listed in Europe, which relies on renewable energy certificates (RECs) to offset emissions, calling the label greenwashing.
- • Greenpeace called on the SEC to weigh climate impact and risks in its review of spot Bitcoin ETF applications.
Summary
The U.S. Court of Appeals for the D.C. Circuit ruled in favor of cryptocurrency investment firm Grayscale Investments in its lawsuit against the Securities and Exchange Commission, according to the Greenpeace statement dated August 30, 2023. The SEC had previously denied Grayscale's application to convert the Grayscale Bitcoin Trust into an exchange-traded fund. The ruling requires Grayscale to resubmit its application, which will return to the SEC for review.
Joshua Archer, Greenpeace USA Bitcoin Campaign Lead, responded that the decision could enable new investment products that impede climate goals. Archer urged financial institutions to conduct due diligence on Bitcoin's climate risk and its impact on communities before entering the Bitcoin ETF market. He stated that Bitcoin uses as much energy as entire countries, mostly derived from fossil fuels.
Greenpeace also targeted Jacobi Asset Management, which has attached an ESG label to a Bitcoin exchange-traded fund listed in Europe. Jacobi claims the fund complies with EU ESG rules by purchasing renewable energy certificates to offset emissions from its bitcoin holdings. Matthew Brander, a senior lecturer in carbon accounting at the University of Edinburgh Business School, told Bloomberg that using RECs to fulfill a decarbonization strategy "isn't credible." Archer characterized the ESG labeling as deception and greenwashing that does not meaningfully reduce the environmental impact of Bitcoin mining.
Greenpeace urged the SEC to conduct a thorough evaluation of climate impact and risks as it considers numerous spot Bitcoin ETF applications. The organization's position is advocacy-based, and its claims about Bitcoin's energy use are presented as Greenpeace's assessment rather than independently verified figures in the source material.
Joshua Archer, Greenpeace USA Bitcoin Campaign Lead, responded that the decision could enable new investment products that impede climate goals. Archer urged financial institutions to conduct due diligence on Bitcoin's climate risk and its impact on communities before entering the Bitcoin ETF market. He stated that Bitcoin uses as much energy as entire countries, mostly derived from fossil fuels.
Greenpeace also targeted Jacobi Asset Management, which has attached an ESG label to a Bitcoin exchange-traded fund listed in Europe. Jacobi claims the fund complies with EU ESG rules by purchasing renewable energy certificates to offset emissions from its bitcoin holdings. Matthew Brander, a senior lecturer in carbon accounting at the University of Edinburgh Business School, told Bloomberg that using RECs to fulfill a decarbonization strategy "isn't credible." Archer characterized the ESG labeling as deception and greenwashing that does not meaningfully reduce the environmental impact of Bitcoin mining.
Greenpeace urged the SEC to conduct a thorough evaluation of climate impact and risks as it considers numerous spot Bitcoin ETF applications. The organization's position is advocacy-based, and its claims about Bitcoin's energy use are presented as Greenpeace's assessment rather than independently verified figures in the source material.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.