Environmental Firm 7RCC Applies for Bitcoin ETF with ESG Focus
A firm specializing in environmental investments, 7RCC, has submitted an application to the Securities and Exchange Commission (SEC) to create a spot Bitcoin (BTC) ETF. The ETF will be centered around environmental, social, and governance (ESG) principles, aiming to provide a carbon-neutral investment option in the cryptocurrency market. The fund will consist of 80% BTC and 20% carbon credit futures. Gemini, a cryptocurrency exchange, will serve as the custodian for the fund’s BTC holdings, offering investors an integrated approach to digital assets and environmental sustainability.
Industry Enthusiasm for the Filing
Nate Geraci and other industry analysts have expressed enthusiasm for the filing. Geraci believes that a Bitcoin “ESG” ETF is inevitable and expects to see further changes to spot Bitcoin ETFs in the future.
Debate Over Regulatory Acceptance
Despite optimism from industry experts, there is ongoing debate about the practicality and regulatory acceptance of such a hybrid crypto investment vehicle.
SEC Reviewing Approach to Spot Bitcoin ETFs
The SEC is currently reviewing its approach to spot Bitcoin ETFs following recent court rulings. Gary Gensler, the head of the regulator, stated that the Commission is studying between 8 and 12 applications. Bloomberg analyst James Seyffart predicts that the SEC will approve the first spot Bitcoin ETFs in January 2024. Seyffart believes that the SEC strategically delayed applications to approve most of them simultaneously, avoiding favoritism towards any particular issuer.
Hot Take: Potential for Carbon-Neutral Crypto Investments
A new application for a spot Bitcoin ETF with an ESG focus highlights the growing interest in carbon-neutral crypto investments. By combining BTC with carbon credit futures, this ETF aims to provide investors with an environmentally sustainable option in the cryptocurrency market. While there are debates about the practicality and regulatory acceptance of such investment vehicles, industry analysts express optimism for their future. The SEC’s ongoing review of spot Bitcoin ETFs and the potential approval of these instruments in early 2024 further indicate the evolving landscape of crypto investments.
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