The US Securities and Exchange Commission (SEC) postponed its decision on the approval of the 7RCC Spot Bitcoin and Carbon Credit Futures ETF. This decision, originally slated for a June 24th, 2024 verdict, has now been pushed back to late November of this year.
What is the 7RCC Spot Bitcoin and Carbon Credit Futures ETF?
The 7RCC Spot Bitcoin and Carbon Credit Futures ETF is a unique exchange-traded fund that aimed to offer investors exposure to both Bitcoin and carbon credits. The brainchild of crypto exchange Gemini, the fund proposed an 80/20 split, with 80% of its assets invested directly in Bitcoin and the remaining 20% allocated to carbon credit futures contracts.
Why Did the SEC Delay the Decision?
The SEC cited the need for “sufficient time to consider the unique structure and potential implications” of this ETF as the reason for the delay. This suggests that the SEC is grappling with the complexities of a financial instrument that combines exposure to a volatile cryptocurrency like Bitcoin with the environmental assets of carbon credits.
