Asset Management Firm 7RCC Global Applies for Bitcoin Spot ETF
7RCC Global, an asset management firm focused on environmental, social, and governance (ESG) investing, has submitted a Form S-1 filing with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin spot exchange-traded fund (ETF) in the United States. The proposed ETF, called the 7RCC Spot Bitcoin and Carbon Credit Futures ETF, aims to provide ESG investors with exposure to the digital asset and blockchain technology.
A Unique Combination of BTC and Carbon Credit Futures
The 7RCC ETF will differ from other spot Bitcoin ETFs as it will hold a combination of 80% BTC and 20% exposure to Carbon Credit Futures. This unique structure aims to reflect the daily changes in BTC’s price and the value of Carbon Credit Futures, represented by the Vinter Bitcoin Carbon Credits Index. The index is linked to emissions allowances issued under cap-and-trade regimes such as the California Carbon Allowance and the European Union Emissions Trading System.
Warning about Potential Risks
7RCC cautions that the fund shares may trade at a discount from their net asset value due to their lack of trading history. Additionally, there is no guarantee that the fund will achieve its investment objective, as it carries risks similar to direct investments in BTC or Carbon Credit Futures.
Tidal Investments as Sponsor and Gemini as Custodian
Tidal Investments, an ETF investment and technology platform, will act as the sponsor of the 7RCC ETF and provide administrative services. Gemini, the crypto exchange owned by the Winklevoss twins, will serve as the custodian for the ETF. Wilmington Trust, a private banking and financial services provider, will be the fund’s trustee. If approved, the ETF will be listed on the New York Stock Exchange with the ticker symbol BTCK.
Hot Take: A Unique Blend of Bitcoin and Environmental Sustainability
The 7RCC Spot Bitcoin and Carbon Credit Futures ETF offers investors a distinctive opportunity to diversify their portfolios by combining the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures. This integrated single-trade approach provides exposure to digital assets while promoting environmental sustainability. With Gemini as the custodian and support from Tidal Investments, this ETF could pave the way for more ESG-focused investment products in the crypto market.
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