Bitcoin ETFs ready to expand after SEC, CFTC approvals

The United States Securities and Exchange Commission (SEC) has approved the listing of the Ecosystem-Aware 7RCC Bitcoin ETF on the NYSE Arca Exchange.

This chapter coincides with the recent progress of the Commodity Futures Trading Commission (CFTC), which cleared the space for Bitcoin options trading.

Bitcoin ETFs will gain traction as regulators clear significant hurdles

In the year On November 15, the SEC approved a rule change allowing 7RCC to list and trade its Spot Bitcoin and Carbon Credit Futures ETF. This decision comes almost a year after the 7RCC made its first promise in December 2023. The application underwent four amendments during a review process that began in March.

The fund aims to allocate 80% of its assets to Bitcoin and 20% to financial instruments linked to carbon credit futures. These futures are based on indices linked to environmental initiatives, including the European Union's emissions trading system, California's carbon allowance and regional greenhouse gas initiatives.

“The Fund will gain exposure to these carbon credit futures only by investing in such futures contracts. The Fund does not intend to invest in carbon credit futures specifically related to bitcoin mining or other related processes,” the SEC wrote.

Carbon credits are financial instruments that allow trading based on the expected value of future carbon credits. These tools help manage regulatory risks while supporting environmentally responsible investing. 7RCC has revealed that Gemini will act as a custodian of Bitcoin holdings.

Meanwhile, the SEC's approval coincides with the CFTC's clearing and risk division announcement. The regulator has stated that it will no longer regulate the clearing of options for spot Bitcoin ETFs. The Options Clearing Corporation (OCC), which handles the clearing and settlement of all equity options, is now a leader in this area.

This development marks significant growth for the launch of Bitcoin ETF options in the space. Analysts, including Bloomberg senior ETF analyst Eric Balchunas, see the CFTC's notice as a key move forward.

“The CFTC has just issued an announcement that clears the way for listing bitcoin ETF options. This is the second hurdle they need to clear after the SEC. Now they have the ball in the OCC's court and they are in it, so they will probably list soon,” Balchunas said.

The approval of the 7RCC Bitcoin ETF and the CFTC's action demonstrate growing regulatory support for innovative financial instruments. These developments pave the way for expanded investment opportunities in both cryptocurrency and sustainable markets.