Futures
Hundreds of contracts settled in USDT or BTC
TradFi
Gold
One platform for global traditional assets
Options
Hot
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Futures Kickoff
Get prepared for your futures trading
Futures Events
Join events to earn rewards
Demo Trading
Use virtual funds to experience risk-free trading
Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Launchpad
Be early to the next big token project
Alpha Points
Trade on-chain assets and earn airdrops
Futures Points
Earn futures points and claim airdrop rewards
7RCC Applies for an ESG-focused Spot Bitcoin ETF
Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.
Source: iStock/pichet_wAsset manager 7RCC has formally submitted a spot Bitcoin exchange-traded fund (ETF) application focused on environmental, social, and governance (ESG) principles to the Securities and Exchange Commission (SEC).
As detailed in the proposal filed on December 18, the ETF is structured to appeal to ESG investors. In line with this commitment, the application will consist of 80% Bitcoin (BTC) and 20% carbon credit futures.
The Bitcoin component provides exposure to the cryptocurrency market while including carbon credit futures, reflecting a dedication to supporting environmentally responsible initiatives.
The 7RRC proposal adopts a balanced approach, aiming to appeal to investors seeking financial returns and a portfolio aligned with their ESG values.
If approved, the asset manager will create a novel investment opportunity under the ticker name BTCK, which will merge digital assets and sustainable finance.
However, the S-1 filing doesn’t address the ongoing debate about the preferred mechanism, “cash or in-kind,” for licensed participants to create and redeem shares of the Bitcoin ETF.
Currently, this matter is actively being discussed in meetings involving potential issuers, including prominent players like BlackRock and the SEC.
Notably, 7RCC has chosen Gemini as the custodian for the ETF and is leveraging the financial platform Tidal to white-label its ETF.
These decisions reflect 7RCC’s strategic approach to structuring and branding the ETF, showcasing adaptability to the evolving landscape of cryptocurrency investments.
In response to this development, Nate Geraci, the president of ETF Store, noted that the emergence of an ESG Bitcoin ETF was expected, stating it was “only a matter of time.”
Additionally, Geraci anticipated ious iterations in the landscape of spot Bitcoin ETFs. This suggests that as the market evolves, different forms of Bitcoin ETFs, particularly those aligned with ESG principles, will likely emerge to meet investors’ diverse preferences and considerations.
The Rise of the ESG Market
In the submitted application, Rali Perduhova, co-founder and CEO of 7RCC Global, acknowledged the prevailing negative perceptions surrounding Bitcoin mining and its environmental impact.
He underscored the firm’s strategic commitment to catering specifically to institutional investors actively seeking environmental, social, and governance (ESG) considerations. The goal is to provide a solution with the coveted ESG endorsement.
ESG has evolved into a prominent investment strategy, providing firms with the opportunity to adopt socially conscious practices. This involves focusing on assets that address critical issues such as climate change and diversity.
A noteworthy trend, highlighted in a November 2022 Hard survey, indicates that 81% of US institutional investors plan to increase allocations to ESG products in the next two years. The survey projected that assets under management in ESG products could double to $10.5 trillion by 2026.
Additionally, over three-quarters of investors were willing to pay higher fees for ESG funds. Notably, despite potential higher compliance costs for asset managers, there is limited evidence of increased fees for retrofitted funds.