Key Points
- The SEC has delayed its decision regarding a proposed ETF focused on carbon credit futures contracts and Bitcoin.
- The proposed fund plans to invest 80% of its assets in Bitcoin and 20% in financial instruments linked to Carbon Credit Futures.
The U.S. Securities and Exchange Commission (SEC) has announced that it will require more time to decide on the proposed exchange-traded fund (ETF) that is centered on carbon credit futures contracts and Bitcoin.
According to a filing made recently, the SEC will decide whether to “approve or disapprove, or institute proceedings” for the 7RCC Spot Bitcoin and Carbon Credit Futures ETF by June 24, 2024.
Reason for Delay
The SEC stated that it finds it suitable to designate a longer period to take action on the proposed rule change, in order to have enough time to consider the proposed rule change.
As per previous filings, the proposed fund aims to invest 80% of its assets in Bitcoin and 20% in “financial instruments, including swap agreements, that provide exposure to Carbon Credit Futures represented by the Index.”
Sustainability Approach
A S-1 registration statement was filed for the spot Bitcoin and carbon credit futures ETF on Dec. 18, 2023, roughly a month prior to the SEC approving 11 spot Bitcoin ETFs.
The fund presents a unique opportunity for investors to diversify their portfolios, balancing the innovative nature of Bitcoin with the progressive field of Carbon Credit Futures. The fund aims to provide investors with a unified single-trade approach to digital assets and environmental sustainability, as stated by the crypto exchange Gemini, who was named the custodian, in a post from December.
