Crypto firm 7RCC applied for an ESG-focused spot Bitcoin ETF that will include 80% Bitcoin and 20% Carbon Credits Futures with the US SEC.
A fresh spot Bitcoin ETF application filed with the United States Securities and Exchange Commission (SEC) by 7RCC, a crypto company that “specializes in developing solutions for ESG-conscious investors,” suggests a new type of investment fund that combines crypto with eco-friendly initiatives.
Namely, the proposed Spot Bitcoin and Carbon Credit Futures ETF will comprise 80% Bitcoin investments and 20% carbon credit futures.
Carbon credit futures are a specific credit instrument which allows the buyer to slash emissions through carbon offset projects in the future, without directly investing in any ESG projects at the exact time of investment.
Carbon credits are issued as certificates or permits, each equal to one metric tonne of CO2. These financial instruments help reduce overall carbon emissions and mitigate environmental instability.
An ESG twist makes the 7RCC fund a lucrative carbon-neutral investment option in the crypto segment. The ETF aims to reflect the changes in BTC prices and the value of carbon credit futures represented by the Vinter Bitcoin Carbon Credits Index. These carbon credit futures are mirroring the value of emissions allowances issued under the European Union Emissions Trading System, the California Carbon Allowance and the Regional Greenhouse Gas Initiative.
The proposed ETF also has an ambitious goal of building a bridge between the digital asset industry and ESG-conscious investors with a focus on ETFs.
The firm has chosen Gemini as custodian on the 7RCC Global Bitcoin and Carbon Credit Futures ETF. Meanwhile, Tidal Financial Group has partnered with 7RCC to facilitate the creation, operation, and growth of the ESG-focused crypto ETF platform.
The rise of concerns about the environmental impact of cryptocurrency mining has brought a new wave of sustainable and eco-friendly coins and blockchain practices. The potential creation of ESG-focused crypto spot ETFs further expands the possibilities to invest in crypto in an eco-conscious way.
Nina Bobro
Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.
