Two carbon-neutral cryptocurrency-backed exchange-traded funds (ETF) are poised to launch in Canada, offering a greener alternative for institutional investors.

Canada-based asset manager Purpose Investments is preparing to launch two new crypto-based ETFs on the Toronto Stock Exchange on Tuesday, both of which offer investors a carbon commencement.

Purpose volition launch its Bitcoin (BTC) and Ether (ETH) ETFs under the BTCC.J and ETHH.J tickers. Different the funds recently launched in the United States, which are futures contract backed, these funds will be backed and settled using BTC as the underlying asset.

The Toronto-based firm has partnered with Patch, a business firm that will help it measure the carbon footprint of the crypto portfolios and offer carbon-removal solutions. Measuring the carbon footprint of crypto mining is no piece of cake job, as there are and so many variables, but the firm has detailed its efforts and the math in a white paper.

Purpose will then invest in vetted carbon offsetting projects with the aim to give clients carbon-neutral exposure to BTC. Some of the projects it will invest in include direct air capture, biomass, mineralization or carbon dioxide removal, forestry, ocean fertilization and soil direction.

According to the firm'due south prospectus, Purpose's new BTC fund held 24,167 BTC (approximately $one.half-dozen billion), while the Ether fund had 86,906 ETH (worth roughly $417 million) as of Monday.

Related: Green Bitcoin: The impact and importance of energy utilisation for Pow

The Purpose Bitcoin ETF (BTCC-B.TO) was Northward America's first Bitcoin fund, which launched in February. It currently has more than than $1 million in volume and has returned virtually xx% over the past calendar month, according to Yahoo Finance.

The Purpose Ether ETF (ETHH.TO) is not every bit popular, with but $210,000 in daily book, but it has made a better return of 38% over the past 30 days.

The company also launched the outset ETF that incorporates carbon offsetting in Europe in June. The fund is trading on the London Stock Exchange under the ticker Nix and tracks the S&P Global Clean Free energy Select Alphabetize.