7RCC Unveils Hybrid Bitcoin and Carbon Credit ETF Plan

7RCC, a crypto asset manager, is is entering the space of exchange-traded funds (ETFs) with a unique proposition. The company has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a spot bitcoin ETF. This move places 7RCC among other prominent asset managers, such as BlackRock, WisdomTree, Ark Invest, and 21Shares, who are also pursuing similar offerings.

The proposed ETF by 7RCC isn’t just another cryptocurrency fund. According to their S-1 filing on December 18, the fund aims to combine bitcoin with Carbon Credit Futures. This innovative strategy reflects 7RCC’s focus on environmental, social, and governance (ESG) investing. The fund’s objective is to mirror the daily changes in bitcoin prices and the value of Carbon Credit Futures, as measured by the Vinter Bitcoin Carbon Credits Index. This index balances a portfolio with 80% bitcoin and 20% Carbon Credit Futures.

Gemini, a renowned cryptocurrency exchange, is set to play a crucial role in this endeavor. 7RCC plans to appoint Gemini as the custodian for the fund’s bitcoin holdings. Gemini supports this initiative, highlighting in a statement on Monday that the ETF provides an opportunity for investors to diversify their portfolios. They emphasize the blend of bitcoin’s innovative aspects with the forward-thinking nature of Carbon Credit Futures.

7RCC’s application is a part of a growing trend among asset managers to explore bitcoin ETFs. Recently, BlackRock updated its S-1 filing, revealing the ticker name for its ETF. This wave of interest signifies a growing acceptance and institutionalization of cryptocurrencies in the financial world.

Dynamics of this ETF echo exactly what former MicroStrategy CEO and current Chairman Michael Saylor said when he defended Bitcoin’s carbon footprint. He stated that Bitcoin’s use of energy is at the centre of its success and is what has kept the decentralized network secure since the first coins were mined more than ten years ago.