SEC Review Period Extended for 7RCC’s Bitcoin Spot ETF
The US Securities and Exchange Commission (SEC) has decided to extend the review period for 7RCC’s Bitcoin spot ETF launch. The SEC will now make a decision by June 24, 2024, regarding the approval or disapproval of the 7RCC Bitcoin spot and Carbon Credit Futures ETF. This extension was granted to allow the SEC ample time to consider the proposed rule change, representing a 45-day extension from the initial deadline set for May 10.
New ETF Proposal by 7RCC
The application submitted to the SEC in December 2023 outlines 7RCC’s fund designed to offer direct exposure to Bitcoin and carbon credits. The ETF will track changes in the price of Bitcoin and carbon credit futures based on the Vinter Bitcoin Carbon Credits Index. This proposal involves the following key points:
- The ETF will invest 80% of its assets in Bitcoin and 20% in financial instruments, such as swaps, providing exposure to carbon credit futures contracts.
- The carbon credits are tied to emissions allowances from the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.
- Gemini exchange has been named as the custodian of the Bitcoin Spot ETF, marking a significant development in the ETF market.
Michael Saylor’s Insight on Ether Spot ETFs
MicroStrategy’s Executive Chairman and Co-founder, Michael Saylor, expressed skepticism about the potential approval of an Ether spot ETF in the United States. Speaking at MicroStrategy’s Bitcoin For Corporations conference, Saylor predicted that the SEC might classify Ether as a security, along with other tokens like BNB, SOL, XRP, and ADA. Saylor’s perspective includes the following viewpoints:
- The SEC’s possible designation of tokens like Ether as unregistered crypto asset securities could hinder the approval of a spot ETF for these assets.
- Established tokens might not be accepted by Wall Street or mainstream institutional investors as viable crypto assets.
- Michael Saylor’s consistent support for Bitcoin, demonstrated by MicroStrategy’s significant BTC holdings, highlights his preference for the flagship cryptocurrency.
Hot Take: Insights on SEC Review and ETF Approval
As the SEC extends its review period for 7RCC’s Bitcoin spot ETF and individuals like Michael Saylor express reservations about the approval of Ether spot ETFs, the cryptocurrency community anticipates significant developments in the ETF market. Stay tuned for updates on regulatory decisions regarding crypto asset ETFs and how these rulings could impact the broader cryptocurrency landscape.
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