Eco-conscious Bitcoin ETF faces delay as SEC extends review period
1 year ago 2 min read
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The U.S. Securities and Exchange Commission (SEC) has again deferred its decision on a proposed eco-friendly Bitcoin exchange-traded fund (ETF).
The SEC’s latest filing on September 4 reveals that the ruling on the 7RCC Spot Bitcoin and Carbon Credit Futures ETF, which seeks to blend Bitcoin investment with carbon credits, has been pushed to November 21.
The delay marks the second postponement since the SEC initially held off on a decision in May. The ETF, submitted for approval by Tidal Investments and filed with NYSE Arca, was first registered in December 2023.
It aims to offer investors exposure to Bitcoin while addressing environmental concerns by offsetting carbon emissions.
This fund is structured to allocate 80% of its investments to Bitcoin and 20% to carbon credit futures.
Carbon credit futures are contracts linked to emissions allowances under cap-and-trade systems, such as those in the European Union and California.
The delay comes amid broader scrutiny of Bitcoin’s environmental impact. Bitcoin mining is known for its high electricity consumption, which contributes to global greenhouse gas emissions.
Recent reports from the International Monetary Fund and other sources highlight the environmental challenges associated with cryptocurrency mining, though some studies suggest the potential for reduced emissions in the future.
The SEC’s decision to push back the ruling follows a similar delay on another ETF proposal by Nasdaq, indicating ongoing regulatory caution in the cryptocurrency space.
