The United States Securities and Exchange Commission (SEC) has approved listing the eco-conscious 7RCC Bitcoin ETF on the NYSE Arca exchange.

This milestone aligns with recent progress from the Commodity Futures Trading Commission (CFTC), which cleared the spot Bitcoin options trading path.

Bitcoin ETFs Gain Traction as Regulators Clear Significant Hurdles

On November 15, the SEC approved a rule change allowing 7RCC to list and trade its Spot Bitcoin and Carbon Credit Futures ETF. This decision comes nearly a year after 7RCC filed its initial prospectus in December 2023. The application underwent four amendments during its review process, which began in March.

The fund aims to allocate 80% of its assets to Bitcoin and 20% to financial instruments tied to Carbon Credit Futures. These futures will be based on indices linked to environmental initiatives, including the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.

“The Fund will gain exposure to these Carbon Credit Futures only by investing directly in only such futures contracts.
The Fund does not intend to invest in Carbon Credit Futures specifically linked to bitcoin mining or other related processes,” The SEC wrote.

Carbon credit futures are financial tools that allow trading based on the anticipated value of carbon credits. These instruments help manage regulatory risks while supporting environmentally responsible investing. 7RCC stated that Gemini would serve as the custodian of its Bitcoin holdings.

Meanwhile, the SEC’s approval coincides with an announcement from the CFTC’s Division of Clearing and Risk. The regulator stated that it no longer oversees clearing for spot Bitcoin ETFs Go to Source to See Full Article
Author: Oluwapelumi Adejumo