7RCC, a company that “specializes in developing solutions for ESG-conscious investors,” has applied for a spot Bitcoin ETF that provides a carbon-neutral investment option in the crypto space.
According to the application filed with the United States Securities and Exchange Commission (SEC), the ETF will focus on catering to investors who adhere to environmental, social, and governance (ESG) principles. Because of this, the ETF will be 80% Bitcoin (BTC) and 20% carbon credit futures.
The company also said that the ETF’s investment objective is to reflect the changes in BTC prices and the value of Carbon Credit Futures represented by the Vinter Bitcoin Carbon Credits Index. The Carbon Credit Futures are 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.
Commenting on the development, ETF Store president Nate Geraci said it was “only a matter of time” before an ESG Bitcoin ETF surfaced. Geraci also predicted that there would be “all types of permutations” when it comes to spot Bitcoin ETFs.
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On Dec. 18, crypto exchange Gemini announced that it would be the custodian of the 7RCC Bitcoin and Carbon Credit Futures ETF. Gemini wrote that the fund offers an opportunity for investors to diversify their portfolios and said that supporting 7RCC as the fund’s custodian is an important development for its platform.
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