NYSE Arca Bitcoin ETF Delayed Again By SEC To November 21

Key Points:

• The SEC delayed its decision on NYSE Arca’s request to list the 7RCC Spot Bitcoin and Carbon Credit Futures ETF, with a final ruling now expected by Nov. 21, 2024.
• The NYSE Arca Bitcoin ETF aims to combine Bitcoin exposure with carbon-credit futures to address Bitcoin’s environmental impact, allocating 80% to Bitcoin and 20% to carbon credits.

The U.S. SEC has for the third time extended its decision on whether to approve or reject a proposed ETF that will track spot Bitcoin combined with carbon-credit futures.

Read more: Nasdaq Bitcoin Index Options Seeks SEC Approval to Launch

SEC Delays NYSE Arca Bitcoin ETF Decision Again

In a filing dated Sept. 4, the agency extended its decision on NYSE Arca‘s listing request to Nov. 21, 2024-for the second time after an earlier delay in May.

The proposed fund-7RCC Spot Bitcoin and Carbon Credit Futures ETF, would offer Bitcoin exposure with a greener twist.

Put another way, the NYSE Arca Bitcoin ETF would aim to have 80% exposure to Bitcoin, while the rest is exposed to carbon credit futures used to offset the emissions of carbon in a cap-and-trade regimen. Carbon credit futures enable their holders to emit a certain quantity of greenhouse gas in markets such as the European Union or California.

While Tidal Investments, the issuer of the NYSE Arca Bitcoin ETF, filed for registration as far back as December 2023, the exchange has only just made the formal request this March 2024.

Regulatory Scrutiny Over Bitcoin Mining Delays ETF Approval

The move comes from the SEC amid broader scrutiny of the environmental impact Bitcoin has. It is a critique of mining cryptocurrency that requires huge amounts of energy in keeping the network safe, resulting in a carbon footprint. The International Monetary Fund estimated back in August that cryptocurrency mining accounts for up to 1% of global greenhouse gas emissions.

Aside from the NYSE Arca Bitcoin ETF, the agency also delayed its decisions on other cryptocurrency ETFs, including a proposed rule change for listing Hashdex Nasdaq Crypto Index ETF on the Nasdaq exchange.