SEC Extends Review Period for 7RCC's Carbon-Neutral Bitcoin ETF Proposal
Summary:
The U.S. SEC has extended its review period for the proposed carbon-neutral Bitcoin exchange-traded fund (ETF) by 7RCC. Now, the decision on the application by NYSE Arca is expected by June 24, 2024. The ETF plans to balance investment in Bitcoin with carbon credits to offset its environmental effects. Assets are intended to be allocated with 80% going to Bitcoin and 20% to financial instruments related to carbon credit futures contracts. Also, regulators have approved 11 direct investment Bitcoin ETFs since the year began, with options trading being the next focus.
The U.S. Securities and Exchange Commission (SEC) has extended the review period of 7RCC's proposed carbon-neutral Bitcoin exchange-traded fund (ETF) listing. A notice dated May 2 indicates that the regulatory body now aims to confirm its approval or rejection of the application by the NYSE Arca by June 24, 2024, pushing out the initial target date of May 10, 2024. The fund aims to balance investor exposure to Bitcoin (BTC) with carbon credits, effectively offsetting the cryptocurrency's environmental impact. As outlined in 7RCC's application, the ETF will reflect day-to-day Bitcoin price shifts, alongside carbon credit futures values derived from the Vinter Bitcoin Carbon Credits Index. The fund's Bitcoin holdings will be safeguarded by crypto exchange, Gemini.
Rali Perduhova, co-founder and CEO of 7RCC Global, stated at the time of application that they aimed to attract "that group of institutional investors that need that ESG tick". The ETF anticipates distribution of 80% of assets to Bitcoin, leaving the remaining 20% for financial tools such as swaps linked to carbon credit futures contracts tied to emissions allowances. Per 7RCC's documents, the carbon credits are part of the European Union Emissions Trading System, California Carbon Allowance, and Regional Greenhouse Gas Initiative frameworks.
Carbon credit futures are financial derivatives for trading based on projected future carbon credit value. These tools are instrumental in handling carbon regulatory risks and bolstering eco-conscious investment strategies.
Since the start of the year, 11 straightforward, or "spot", Bitcoin ETFs have been authorized by the Commission. These vehicles permit direct Bitcoin investment instead of utilizing derivatives like futures, giving investors access to Bitcoin market activity through a regulated product. Options trading concerning spot Bitcoin ETFs is the next goal for investment managers. Since the year began, decisions regarding applications from the New York Stock Exchange, NASDAQ, and Cboe Global Markets have been postponed by the Commission.
In related news, a recent poll suggested that 68% of Rune tokens are experiencing a downturn - triggering a debate whether they are actually beneficial for Bitcoin users.
Published At
5/3/2024 10:10:37 PM
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