- The US Securities and Exchange Commission (SEC) has extended its review period on the launch of crypto asset management company 7RCC’s Bitcoin spot ETF (exchange-traded fund).
- The new deadline for the decision is set for June 24, 2024, which represents a 45-day extension from the initial deadline.
- 7RCC’s fund is designed to provide direct exposure to Bitcoin alongside carbon credits, with 80% of its assets invested in Bitcoin and 20% in financial instruments tied to emissions allowances.
The SEC has extended its review period for the Bitcoin spot ETF proposed by 7RCC, a crypto asset management company. The decision, now due on June 24, 2024, could potentially introduce a new dimension to the ETF market with direct exposure to Bitcoin and carbon credits.
SEC Extends Deadline For 7RCC’s Bitcoin Spot ETF
In a notice published on Thursday, May 2nd, the SEC announced its decision to extend the review period for the Bitcoin spot and Carbon Credit Futures ETF proposed by 7RCC. The new deadline is set for June 24, 2024, providing the commission with an additional 45 days to consider the proposed rule change.
Details of 7RCC’s Proposed Fund
The fund proposed by 7RCC aims to provide direct exposure to Bitcoin alongside carbon credits. According to the application submitted to the SEC in December 2023, the ETF will track the changes in the price of Bitcoin and carbon credit futures based on the Vinter Bitcoin Carbon Credits Index. The fund plans to invest 80% of its assets in Bitcoin and 20% in financial instruments, such as swaps, that provide exposure to carbon credit futures contracts tied to emissions allowances. The carbon credits are related to the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.
SEC To Deny Ether Spot ETFs: Michael Saylor
While the SEC continues its review of 7RCC’s proposed fund, another exchange-traded product, the Ether spot ETF, awaits the commission’s greenlight. However, recent discussions surrounding the potential approval of this investment product have been less than optimistic. MicroStrategy Executive Chairman and Co-founder Michael Saylor, a vocal supporter of Bitcoin, has speculated that the SEC could label Ether as a security, thus dampening hopes of seeing the ETH spot ETF launch in the United States.
Conclusion
The SEC’s decision to extend its review period for 7RCC’s proposed Bitcoin spot ETF highlights the commission’s cautious approach towards the introduction of new crypto-related investment products. While the outcome remains uncertain, the approval of the fund could potentially introduce a new dimension to the ETF market, providing investors with direct exposure to Bitcoin and carbon credits. Meanwhile, the future of the Ether spot ETF remains uncertain, with speculation suggesting that the SEC could label Ether as a security.
