Asset Manager 7RCC Submits Application for ESG Bitcoin ETF
Asset manager 7RCC has officially filed an application for a spot Bitcoin exchange-traded fund (ETF) that focuses on environmental, social, and governance (ESG) principles with the Securities and Exchange Commission (SEC). The ETF will consist of 80% Bitcoin and 20% carbon credit futures, providing exposure to the cryptocurrency market while supporting environmentally responsible initiatives.
Appealing to ESG Investors
The 7RCC proposal aims to attract investors seeking financial returns and a portfolio aligned with their ESG values. If approved, the ETF will offer a unique investment opportunity merging digital assets and sustainable finance under the ticker name BTCK.
Debate over Creation and Redemption Mechanism
The filing does not address the ongoing debate about the preferred mechanism for licensed participants to create and redeem shares of the Bitcoin ETF. Discussions involving potential issuers like BlackRock and the SEC are actively taking place.
Gemini Chosen as Custodian
7RCC has selected Gemini as the custodian for the ETF and is using Tidal’s financial platform to white-label its ETF.
Expert Opinion: ESG Bitcoin ETFs Expected
Nate Geraci, president of ETF Store, states that the emergence of an ESG Bitcoin ETF was expected. He anticipates various iterations of spot Bitcoin ETFs as the market evolves, particularly those aligned with ESG principles.
The Rise of the ESG Market
Rali Perduhova, CEO of 7RCC Global, acknowledges negative perceptions surrounding Bitcoin mining’s environmental impact. The firm is committed to catering to institutional investors actively seeking ESG considerations and providing an ESG-endorsed solution.
ESG has become a prominent investment strategy, with 81% of US institutional investors planning to increase allocations to ESG products in the next two years. The Harvard survey projects that assets under management in ESG products could reach $10.5 trillion by 2026.
Investors report higher ESG investment performance yields compared to non-ESG counterparts, and many are willing to pay higher fees for ESG funds.
Hot Take: 7RCC Pioneers ESG Focus in Bitcoin ETF Market
7RCC’s application for an ESG-focused spot Bitcoin ETF demonstrates the growing demand for sustainable and socially conscious investments. As institutional investors increasingly prioritize ESG considerations, the market is likely to see more iterations of Bitcoin ETFs aligned with these principles. The rise of ESG investing presents opportunities for asset managers and investors alike, highlighting the potential for significant growth in this sector.
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