SEC delays decision on 7RCC’s eco-friendly spot Bitcoin ETF


The United States Securities and Exchange Commission (SEC) has prolonged its review period on the listing of 7RCC’s carbon-neutral spot Bitcoin exchange-traded fund (ETF).

According to a May 2 notice, the Commission will now finalize its approval or disapproval of the NYSE Arca’s application by June 24, 2024. The first deadline was set for May 10, 2024.

The fund is designed to expose investors to Bitcoin (BTC) alongside carbon credits, mitigating the digital asset’s carbon footprint.

Based on 7RCC’s application with the regulator, the Bitcoin ETF will track daily fluctuations in the cryptocurrency’s price, as well as carbon credit futures based on the Vinter Bitcoin Carbon Credits Index. Crypto exchange Gemini would be the custodian of the Bitcoin fund.

“We want to target that group of institutional investors that need that ESG tick mark,” 7RCC Global co-founder and CEO Rali Perduhova explained when the application was filed. 

Related: US lawmakers urge SEC to approve Bitcoin options trading

The ETF plans to allocate 80% of its assets to Bitcoin and the remaining 20% to financial instruments, such as swaps, tied to carbon credit futures contracts related to emissions allowances. According to 7RCC’s filing, the carbon credits are associated with the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.

Carbon credit futures are financial derivatives that enable trading based on the expected future value of carbon credits. These instruments enable financial strategies to manage carbon regulatory risks and support environmentally focused investment strategies.

Since January, the Commission has approved 11 spot Bitcoin ETFs. These ETFs allow for direct investment in Bitcoin rather than through derivatives such as futures, providing exposure to Bitcoin’s market movements through a regulated investment product.

Investment managers’ next target is options trading on spot Bitcoin ETFs. Since January, the Commission has been delaying a decision on applications submitted by the New York Stock Exchange, Nasdaq and Cboe Global Markets.

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