In the inaugural institutional-grade crypto ESG ranking conducted by CCData, Ethereum (ETH) emerged as the top-ranked cryptocurrency, while Bitcoin (BTC) did not make it to the top 10.
The top five cryptocurrencies in the ranking are Ethereum (ETH), Solana (SOL), Cardano (ADA), Binance Coin (BNB), and Aptos (APT). Notably, Ethereum (ETH) is the sole crypto project to receive a “AA” grade in the ranking.
Source: CCData
In the ESG ranking, Ethereum (ETH) achieved scores above 25 on all three measures, while Bitcoin (BTC) scored 7 on its environmental metric. Bitcoin received a final grade of “B” with a total score of 58, whereas Ethereum attained a total score of 79.
Source: CCData
The report attributes Ethereum’s (ETH) top ranking to its shift towards a proof-of-stake consensus method, significantly reducing its energy requirements. In contrast, Bitcoin (BTC) relies on a proof-of-work consensus method known for its substantial energy consumption.
ESG Scores’ Impact on Institutional Adoption of Bitcoin and Ethereum:
ESG scores are gaining significance in the financial sector, with projections from PricewaterhouseCoopers (PwC) suggesting that ESG-related assets could reach $33.9 trillion by 2026, accounting for one-fifth of global investments. In the United States, ESG-related assets are anticipated to reach $10.5 trillion by 2026.
PwC’s report reveals that 78% of surveyed investors expressed their willingness to pay higher fees for ESG funds. Additionally, 52% of investors stated their openness to incorporating ESG factors into performance-related fees.
The report emphasizes conflicts that exist between asset managers‘ fiduciary duties to maximize financial returns and the growing significance of ESG concerns. Nevertheless, three-quarters of investors now perceive ESG as an integral component of these fiduciary obligations.
Considering the data mentioned, institutional adoption of assets may be influenced by ESG scores. As a result, Bitcoin (BTC) could experience a decline in adoption among financial giants, while Ethereum (ETH) may encounter fewer hurdles in this regard.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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