7RCC, a cryptocurrency firm, is making progress towards launching its eco-friendly spot Bitcoin ETF in the United States, which could offer another investment option for Bitcoin ETF investors.
On March 13, the New York Stock Exchange submitted a 19b-4 form, which is required to list and trade shares of 7RCC’s spot Bitcoin and Carbon Credit Futures ETF.
In December, 7RCC filed an S-1 application with the SEC for the Bitcoin ETF, aiming to provide investors with exposure to the digital asset as well as carbon credits.
The objective of the fund is to track the daily price changes of BTC and the value of carbon credit futures contracts, based on the Vinter Bitcoin Carbon Credits Index.
The filing stated, “The Index seeks to provide exposure to Bitcoin with an environmentally responsible approach by offsetting carbon emissions.” However, there have been limited updates from the company regarding its progress since then.
The recent 19b-4 filing is known as a “proposed rule change” filing, which is necessary for a stock exchange to list a new product. This filing is considered more crucial within the SEC approval process, although both filings must be approved for the new product to begin trading.
At the time of the S-1 filing, Rali Perduhova, co-founder and CEO of 7RCC Global, stated, “We want to target that group of institutional investors that need that ESG tick mark.”
The ETF will allocate 80% of its assets to Bitcoin and 20% to financial instruments, such as swaps, that provide exposure to carbon credit futures contracts linked to emissions allowances.
The carbon credit futures will be linked to the value of emissions allowances issued under the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.
During an interview with Bloomberg TV on March 13, Perduhova predicted that BTC prices would reach $200,000 or higher by the end of the year. She also stated, “The approvals of the [spot Bitcoin] ETFs were a catalyst, a global event. Not only did this open the door for wider adoption of the asset in the US, but the narrative has shifted globally.”
Perduhova mentioned that the upcoming halving will reduce the supply of BTC being mined from 900 BTC per day to around 450 BTC per day, but the demand is currently around 9,000 to 10,000 BTC per day.
The Gemini crypto exchange has been chosen as the custodian for the 7RCC Bitcoin and Carbon Credit Futures ETF.