(iexclusivenews) – 7RCC, a company that “creates solutions for investors who care about environmental, social, and governance (ESG) issues,” has filed an application with the United States Securities and Exchange Commission (SEC) for a Bitcoin ETF that offers a carbon-neutral way to invest in the crypto space.
The ETF will target investors who want to align their crypto investments with their ESG values. To achieve this, the ETF will allocate 80% of its assets to Bitcoin BTC $42,969 and 20% to carbon credit futures.
What Are Carbon Credit Futures and How Do They Work?
Carbon credit futures are contracts that allow buyers and sellers to trade carbon credits at a predetermined price and date. Carbon credits are certificates that represent the right to emit a certain amount of greenhouse gases.
They are issued by various programs that aim to reduce carbon emissions, such as the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.
By investing in carbon credit futures, the ETF will offset the carbon footprint of Bitcoin, which is known to consume a lot of energy and generate a lot of emissions.
The ETF will use the Vinter Bitcoin Carbon Credits Index to track the performance of the carbon credit futures. The index reflects the changes in the value of the carbon credits relative to the changes in the price of Btc.
Why Is This ETF Unique and Innovative?
The ETF proposed by 7RCC is the first of its kind to combine Bitcoin and carbon credit futures in one fund. The ETF aims to provide investors with exposure to the growth potential of Bitcoin while also supporting the efforts to combat climate change.
The ETF also offers a way for investors to diversify their portfolios and hedge against the volatility and risk of the crypto market. Nate Geraci, the president of ETF Store, a platform that provides information and analysis on ETFs, commented on the novelty and significance of the ETF.
New filing: 7RCC Spot Bitcoin & Carbon Credit Futures ETF…
Holds 80% bitcoin & 20% carbon credit futures.
Was only a matter of time before we got an “ESG” bitcoin ETF.
We’re gonna see all types of permutations on spot bitcoin ETFs. pic.twitter.com/yeIyEGaGyf
— Nate Geraci (@NateGeraci) December 18, 2023
He said that it was “only a matter of time” before someone came up with an ESG Bitcoin ETF. He also predicted that there would be “all types of permutations” of Bitcoin ETFs in the future.
Related: Dfinity founder says blockchain can bolster efforts to fight climate change1 On Dec. 18, crypto exchange Gemini announced that it would be the custodian of the 7RCC Bitcoin and Carbon Credit Futures ETF.
Gemini said that the fund would provide an opportunity for investors to diversify their portfolios and that supporting 7RCC as the fund’s custodian was an important development for its platform.