SEC delays decision on 7RCC’s eco-friendly spot Bitcoin ETF
The United States Securities and Exchange Commission has extended the review period for the listing of 7RCC's carbon-neutral Bitcoin exchange-traded fund (ETF).
According to the May 2 announcement, the commission will now finalize whether to approve NYSE Arca's application by June 24. The first deadline is set for May 10.
The fund is designed to expose investors to Bitcoin (BTC) with carbon credits, reducing the digital asset's carbon footprint.
Based on the 7RCC application with the regulator, the Bitcoin ETF tracks daily fluctuations in cryptocurrency prices, as well as carbon credit futures on the Vinter Bitcoin Carbon Credit Index. Crypto exchange Gemini will be the guardian of the Bitcoin fund.
“We want to target a group of institutional investors who need that ESG signal,” 7RCC Global founder and CEO Raleigh Perduhova said at the time of the filing.
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The ETF plans to allocate 80% of its assets to Bitcoin and the remaining 20% to financial instruments, such as swaps. Carbon credits are linked to the EU's emissions trading system, California's carbon allowance and regional greenhouse gas initiatives, according to the 7RCC filing.
Carbon Credit Futures are financial derivatives that enable trading based on the future value of carbon credits. These tools enable financial strategies to manage carbon control risks and support environmentally focused investment strategies.
Since January, the commission has approved 11 spot Bitcoin ETFs. These ETFs allow you to invest directly in Bitcoin, rather than in derivatives such as futures, providing exposure to Bitcoin market movements through a regulated investment product.
The next target for investment managers is trading in spot Bitcoin ETFs. Since January, the commission has been delaying decisions on applications filed by the New York Stock Exchange, Nasdaq and Cibo Global Markets.
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