SEC Delays Decision on Bitcoin & Carbon Credit Futures ETF

As a researcher with a background in finance and experience following the regulatory landscape of cryptocurrencies, I find the SEC’s decision to delay their response to the proposed 7RCC Spot Bitcoin and Carbon Credit Futures ETF intriguing. Given the recent wave of approvals for bitcoin ETFs, it is not unexpected that the regulator would want to take a closer look at this unique proposal.

The SEC announced that deciding on the future steps for a proposed ETF combining bitcoin and carbon credit futures contracts will be a more drawn-out process.

In a filing made public on Thursday, the regulatory body indicated its intent to make a decision by June 24, 2024, regarding whether to approve, disapprove, or initiate proceedings for the 7RCC Spot Bitcoin and Carbon Credit Futures ETF.

The SEC proposes extending the decision-making timeline on the proposal to allow for thorough examination of the suggested rule modification.

Approximately 80% of the proposed fund’s assets are planned to be invested in Bitcoin, while the remaining 20% will be allocated to financial instruments linked to Carbon Credit Futures through swap agreements, based on past submissions.

On December 18, 2023, a registration statement was submitted to the SEC for an ETF that would invest in both spot bitcoin and carbon credit futures, approximately a month before the SEC gave its approval for 11 similar Bitcoin ETFs.

In the same announcement, Gemini highlighted that their new fund offers investors an exceptional opportunity to diversify their investments by combining the revolutionary potential of Bitcoin with the forward-thinking world of Carbon Credit Futures.

As a crypto investor, I would describe it this way: The Fund provides me with a complete investment solution for both digital assets and environmental sustainability in a single trade. This means that I can support the growth of the crypto market while also making a positive impact on the environment through my investment.

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2024-05-03 23:16