The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision. This concerns a proposal by NYSE Arca.
The latter aims to list an exchange-traded fund (ETF) combining spot Bitcoin (BTC) and carbon credit futures.
According to a September 4 filing, the final decision will be postponed until November 21, 2024.
SEC Delays Approval of Bitcoin ETF Combining Spot and Carbon Credits
This is the second time the SEC has postponed this decision. The proposed ETF, called the 7RCC Spot Bitcoin and Carbon Credit Futures ETF, is designed to enable investors to invest in Bitcoin.
It will also enable them to reduce its environmental impact.
The fund plans to allocate 80% of its assets to Bitcoin and 20% to carbon credit futures.
Tidal Investments, the ETF’s issuer, filed for registration in December 2023. NYSE Arca submitted the formal application in March 2024.
Carbon credit futures are designed to help reduce greenhouse gas emissions. This is achieved through a cap-and-trade system.
In effect, these contracts represent emissions allowances. These are regulated in the European Union and California.
SEC Delay Seen as Obstacle to Resolving Bitcoin’s Environmental Impact.
The SEC’s delay is seen as an obstacle to resolving Bitcoin’s environmental impact. Bitcoin is known for its high energy consumption.
According to the International Monetary Fund, cryptocurrency mining contributes around 1% of global greenhouse gas emissions.
This ETF stands out for its ecological approach. It uses carbon credits to offset the emissions associated with Bitcoin. However, it remains uncertain whether the SEC will approve this approach.
The postponement of the SEC’s decision on the 7RCC Spot Bitcoin and Carbon Credit Futures ETF is attracting attention from the cryptocurrency industry.
This decision could have a significant impact on the adoption of Bitcoin. Also, regarding efforts to reduce its environmental footprint!
