The United States Securities and Exchange Commission (SEC) has extended its examination period for the potential approval of a carbon-neutral spot Bitcoin exchange-traded fund (ETF) by 7RCC. The SEC will now make a decision on the NYSE Arca’s application by June 24, 2024, delaying the initial deadline of May 10, 2024. This ETF aims to provide investors with exposure to Bitcoin while also mitigating its carbon footprint through the inclusion of carbon credits. The proposed ETF will track the daily price fluctuations of Bitcoin and carbon credit futures based on the Vinter Bitcoin Carbon Credits Index. The cryptocurrency exchange Gemini will act as the custodian for the Bitcoin fund.
7RCC Global co-founder and CEO Rali Perduhova explained that the ETF’s target audience includes institutional investors who prioritize environmental, social, and governance (ESG) criteria. The ETF plans to allocate 80% of its assets to Bitcoin and the remaining 20% to financial instruments tied to carbon credit futures contracts, specifically focused on emissions allowances related to the European Union Emissions Trading System, California Carbon Allowance, and the Regional Greenhouse Gas Initiative. Carbon credit futures are financial derivatives that allow for trading based on the anticipated future value of carbon credits. These instruments support strategies to manage carbon regulatory risks and promote environmentally conscious investment strategies.
Since January, the SEC has already approved 11 spot Bitcoin ETFs, which enable direct investment in Bitcoin through regulated investment products instead of derivatives like futures. The next goal for investment managers is to introduce options trading on spot Bitcoin ETFs. The SEC has been postponing decisions on applications submitted by the New York Stock Exchange, Nasdaq, and Cboe Global Markets regarding this matter since January.
Why does it take so long to make a decision? It’s ridiculous! 😠