SEC Approves 7RCC Bitcoin ETF With Carbon Credit Balance

Key Points:

• The SEC approved the 7RCC Spot Bitcoin and Carbon Credit Futures ETF for listing on NYSE Arca.
• The 7RCC Bitcoin ETF allocates 80% to Bitcoin and 20% to carbon credit futures.

The SEC has given swift approval for the 7RCC Spot Bitcoin and Carbon Credit Futures ETF to list and trade on the NYSE Arca exchange.

Read more: Goldman Sachs Increases Bitcoin ETF Holdings to $710M

SEC Greenlights the 7RCC Bitcoin ETF

After serious review and public comment, the decision was finalized on November 15, 2024. The SEC approved a fourth amendment to the 7RCC Bitcoin ETF proposal to address potential market and investor risks.

The 7RCC Bitcoin ETF, proffered by crypto asset firm 7RCC, is designed to allot 80% of its assets to Bitcoin and 20% to carbon credit futures and related instruments, including swaps. This exposes investors to the fast-changing cryptocurrency market while appealing to their interest in sustainability through carbon offset mechanisms.

7RCC ETF Combines Cryptocurrency and Sustainability

First filed on March 13, 2024, the filing went through several amendments, which testified to how cumbersome the effort to combine spot Bitcoin assets with carbon credit futures was. Heavy due diligence was conducted to satisfy the staunch SEC requirements for novel financial products.

In its filing, 7RCC listed Gemini as the custodian of the Bitcoin held by the ETF. By investing in cryptocurrencies and pairing that investment with carbon credits, the fund attempts to attract the new, environmentally conscious investor while diving deeper into diversified crypto assets.

The green light means a growing acceptance of hybrid financial instruments that marry traditional and digital asset classes and could open the way to more such ETFs.