ESG-focused 7RCC Joins Race for Bitcoin ETF Approval
Coinspeaker
ESG-focused 7RCC Joins Race for Bitcoin ETF Approval
Crypto asset management firm 7RCC might be the latest in a long list of firms seeking a spot Bitcoin exchange-traded fund (ETF) approval. This follows after the ESG-focused firm recently applied with the Securities and Exchange Commission (SEC). According to the filing, 7RCC is hoping to get the nod for its spot bitcoin and carbon credits futures ETF.
7RCC was founded in 2021 with a focus on environmental, social, and governance (ESG) investing. That is, it primarily focused on offering crypto and blockchain-based assets to ESG-focused investors.
However, its interest in an ETF did not surface until about 18 months ago when it started to look at the possibility. As it turned out, it didn’t have the needed infrastructure at the time to pursue an application.
Did 7RCC Apply Too Late?
Speaking about the delay with its spot Bitcoin ETF application, CEO Rali Perduhova said it was never planned that way. He suggested that the firm just needed to be in the right position before coming forward with its application. Part of his statement reads:
“We were trying to position ourselves to be part of that first batch, but clearly that didn’t work out.”
Interestingly, 7RCC’s crypto ETF differs from those of other entrants such as BlackRock, Grayscale, and Ark 21Shares. 80% of it will consist of Bitcoin, while the rest will hold carbon credits futures. Although the filing did not reveal the custodian for cash and equivalent assets, Perduhova can confirm that Gemini exchange will custody the fund’s Bitcoin.
Gemini also issued a statement on the ETF. In a press release, the crypto exchange explains it as creating a bridge for investors where they can merge “the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures. That is, with the fund, investors may now have access to digital assets using a trading approach that already incorporates environmental sustainability.
Anticipation for ETF Approvals on the Rise
It should be mentioned that the expectations that the SEC will approve a spot bitcoin ETF shortly have grown in recent months. There have been reports that a wave of approval could come as early as the first week of January 2024.
Though unofficial, many of the reports may have been tied to the increased engagement that the SEC has been having with applicants in recent times. Another thing that has fueled the anticipation is a court ruling that Coinspeaker reported earlier. The ruling asked the agency to review one of its ETF rejections, so it only remains to be seen whether 7RCC is late to the party or not.
Whatever might be the case, participants and keen observers continue to wait as the fate of the entire crypto industry may just be hanging on the SEC’s upcoming decision.