7RCC, a company focused on sustainable investment solutions, applied for a spot Bitcoin ETF, emphasizing an 80% investment in Bitcoin and 20% in carbon credit futures in its SEC filing.
The spot Bitcoin ETF by 7RCC aims to attract investors interested in crypto while supporting environmental sustainability, aligning with environmental, social, and governance (ESG) factors.
7RCC’s spot Bitcoin ETF, per the SEC filing, will track changes in Bitcoin prices and the value of carbon credit futures represented by the Vinter Bitcoin Carbon Credits Index.
The ETF includes carbon credit futures linked to emissions allowances from major carbon credit markets: the European Union Emissions Trading System (EU ETS), the California Carbon Allowance (CCA), and the Regional Greenhouse Gas Initiative (RGGI).
Nate Geraci, president of the ETF Store, deemed the introduction of an ESG Bitcoin ETF inevitable, anticipating a variety of spot Bitcoin ETFs in the market, each catering to different investor needs.
While optimism prevails, ongoing discussions persist about the viability and regulatory endorsement of this hybrid crypto investment vehicle.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) is reevaluating its approach to spot Bitcoin ETFs in light of recent court rulings and a “high number” of applications. SEC Chairman Gary Gensler stated that the agency is currently reviewing eight to twelve applications for spot Bitcoin ETFs.
Bloomberg analyst James Seyffart predicted that the SEC will approve the first spot Bitcoin ETFs in January 2024.
However, he further argued that the SEC strategically delayed its review of spot Bitcoin ETF applications to approve most of them simultaneously, rather than giving an advantage to a single issuer.
On December 18th, Gemini announced its role as the custodian for the 7RCC Bitcoin and Carbon Credit Futures ETF, emphasizing the unique opportunity for investors to diversify portfolios with exposure to both Bitcoin and carbon credit futures.
The announcement highlighted Gemini’s role as a significant milestone for its platform and the broader cryptocurrency industry.
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