Tuesday, February 18, 2025

7RCC’s Eco-Friendly Bitcoin ETF Faces SEC Delay

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Originally published on: May 03, 2024

The Securities and Exchange Commission in the US has extended its evaluation period for the approval of 7RCC’s environmentally-conscious spot Bitcoin exchange-traded fund (ETF).

In a recent announcement on May 2, the commission disclosed its decision to postpone the approval or disapproval of NYSE Arca’s application until June 24, shifting from the original deadline of May 10.

This innovative fund aims to offer investors exposure to Bitcoin while incorporating carbon credits to offset the digital asset’s carbon footprint.

7RCC’s proposal outlines that the Bitcoin ETF will track the daily price movements of the cryptocurrency in addition to carbon credit futures based on the Vinter Bitcoin Carbon Credits Index. The renowned crypto exchange Gemini is slated to be the custodian of the Bitcoin fund.

CEO of 7RCC Global, Rali Perduhova, highlighted the fund’s appeal to institutional investors seeking ESG-compliant investment opportunities when the application was first submitted.

The ETF plans to allocate 80% of its assets to Bitcoin and the remaining 20% to financial instruments like swaps linked to carbon credit futures contracts associated with emissions allowances programs such as the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.

Carbon credit futures, a type of financial derivative, enable trading based on the anticipated future value of carbon credits, supporting strategies to manage carbon regulatory risks and facilitate environmentally conscious investment initiatives.

Following the approval of 11 spot Bitcoin ETFs since January, allowing direct investment in Bitcoin, the focus has now shifted to options trading on spot Bitcoin ETFs. The SEC has been delaying a decision on applications from major exchanges like the New York Stock Exchange, Nasdaq, and Cboe Global Markets since the beginning of the year.

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