The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the proposed eco-friendly spot Bitcoin exchange-traded fund (ETF) from 7RCC, extending the review period to June 24, 2024.
7RCC is an alternative investment manager founded in 2021, focused on bridging the gap between the digital asset industry and environmentally conscious investors. The company aims to create innovative investment products that reflect the growing interest in sustainability within the financial sector.
The main product offered by 7RCC is a special fund called the 7RCC Bitcoin and Carbon Credit ETF. This fund allows people to invest in Bitcoin while also supporting efforts to reduce environmental impact by including carbon credits.
The goal is to help solve concerns about how Bitcoin mining affects the environment by combining digital assets with eco-friendly investments.
The ETF is designed to allocate 80% of its assets to Bitcoin and 20% to carbon credit futures contracts, reflecting the daily changes in the price of Bitcoin and the value of these futures.
The carbon credit futures would be linked to emissions allowances from prominent initiatives such as the EU ETS, California Carbon Allowance, and Regional Greenhouse Gas Initiative, further enhancing the fund’s eco-friendly credentials.
Furthermore, Gemini, a well-established cryptocurrency exchange, has been selected to serve as the Bitcoin custodian for the 7RCC Bitcoin ETF.
Despite the potential benefits of this eco-friendly Bitcoin ETF, the proposal has faced delays in gaining approval from the U.S. Securities and Exchange Commission (SEC).
The SEC originally planned to decide on the 7RCC Bitcoin and Carbon Credit ETF by May 10, 2024. However, they’ve pushed this deadline as part of a broader trend of taking more time to carefully review several Bitcoin ETF proposals.
The SEC’s hesitance to approve these products is largely attributed to concerns over compliance and market regulation, as it takes a measured approach to ensure the protection of investors.
7RCC applied for the eco-friendly spot Bitcoin ETF in late 2023.
