SEC Approves 7RCC Spot Bitcoin and Carbon Credit Futures ETF for NYSE Arca Listing

SEC Approves Hybrid Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has swiftly approved the 7RCC Spot Bitcoin and Carbon Credit Futures ETF for listing on NYSE Arca. The landmark decision, finalized on November 15, 2024, marks a pivotal step in bridging digital assets with sustainability initiatives. Following a thorough review and multiple public comment periods, the SEC gave the green light after approving a fourth amendment aimed at addressing market volatility and investor protection.

Managed by 7RCC, a prominent crypto asset firm, the ETF breaks new ground by allocating 80% of its holdings to Bitcoin and 20% to carbon credit futures and related instruments such as swaps. This dual-asset structure offers investors exposure to Bitcoin’s high-growth potential while integrating carbon offset mechanisms, appealing to a growing cohort of environmentally conscious investors. Gemini, a well-known crypto custodian, will safeguard the fund’s Bitcoin assets, ensuring secure management in line with regulatory standards.

The 7RCC Bitcoin ETF, first filed on March 13, 2024, navigated a rigorous amendment process to meet the SEC’s stringent requirements for hybrid financial instruments. The combination of spot Bitcoin with carbon credit futures demanded meticulous due diligence to ensure compliance and mitigate potential risks. The SEC’s approval signals a shift toward greater acceptance of innovative ETFs that blend traditional and digital asset classes.

This approval not only underscores the evolving regulatory landscape but also sets the stage for future hybrid ETFs. By merging cryptocurrency investments with sustainability goals, 7RCC aims to attract investors looking for diversification and environmental impact. The fund’s launch could catalyze similar financial products, further integrating digital assets into mainstream investment portfolios.

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