Asset manager 7RCC has applied for an environment-conscious spot Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), according to a Dec. 18 filing.
The ETF, going by the ticker BTCK, and formally named the 7RCC Bitcoin and Carbon Credit Futures ETF, takes a novel approach as its strategy involves investing in the top cryptocurrency and gaining exposure to Carbon Credit Futures. The asset manager S-1 statement reads:
“The Fund’s investment objective is to reflect the daily changes of the price of bitcoin and the value of Carbon Credit Futures, as represented by the Vinter Bitcoin Carbon Credits Index… The Index is designed to track the performance of investing in a portfolio comprised of 80% bitcoin and 20% Carbon Credit Futures.”
7RCC’s approach toward its Bitcoin ETF application stands out from other applicants in the field, including BlackRock. However, this move is not entirely surprising considering the firm’s track record in environmental, social, and corporate (ESG) investments.
Over the years, Bitcoin detractors have severely criticized the top asset’s energy consumption. However, 7RCC’s ETF will provide opportunities for investors conscious of the cryptocurrency’s emissions and environmental impact.
Gemini to provide custodial services
7RCC picked Gemini, a U.S.-based cryptocurrency exchange owned by Cameron and Tyler Winklevoss, as the custodian for its Bitcoin holdings. This choice differs from other ETF applicants who mostly opted for Coinbase, the largest U.S.-based cryptocurrency platform.
In a Dec. 18 statement, Gemini explained that the ETF offers a unique opportunity for investors to diversify their portfolios, balancing the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures. Thus, the ETF provides investors with an integrated single-trade approach to digital assets and environmental sustainability.
Meanwhile, the cryptocurrency exchange is involved in a legal conflict with the SEC regarding its defunct Earn product. The SEC contends that this investment offering falls under the category of security, a claim vehemently refuted by the firm.