This Asset Manager Just Joined the Bitcoin Spot ETF Race, But There’s a Catch

7RCC Global, an asset management firm focused on environmental, social, and governance (ESG) investing, has joined the race for a Bitcoin spot exchange-traded fund (ETF) in the United States.

According to a Form S-1 filing with the U.S. Securities and Exchange Commission (SEC), the 7RCC Spot Bitcoin and Carbon Credit Futures ETF will provide ESG investors access to the digital asset and blockchain technology.

A New Bitcoin Spot ETF Applicant

7RCC’s ETF is one of a kind in that it will hold a combination of 80% BTC, and the remaining 20% will obtain exposure to Carbon Credit Futures, unlike other spot Bitcoin ETFs on the SEC’s desk. The product is designed to reflect the daily changes in BTC’s price and the value of Carbon Credit Futures, as represented by the Vinter Bitcoin Carbon Credits Index.

The index is linked to the value of emissions allowances issued under several cap-and-trade regimes, including the California Carbon Allowance, the European Union Emissions Trading System, and the Regional Greenhouse Gas Initiative.

The alternative investment manager warned that shares of the fund may trade at a discount from their net asset value as they have no history of public trading. There is also no guarantee that the product will achieve its investment objective as it involves risks similar to those directly invested in BTC or Carbon Credit Futures.

The sponsor of the new fund is ETF investment and technology platform Tidal Investments. The firm will facilitate the creation, operation, and growth of the 7RCC ETF, providing administrative services to the fund.

Gemini to Serve as Custodian

In addition, the Winklevoss-owned crypto exchange Gemini will function as the ETF’s custodian, while private banking and financial services provider Wilmington Trust will serve as the fund’s trustee. 7RCC did not disclose the ETF’s custodian for cash and cash equivalents. If the application is approved, the new ETF will be listed on the New York Stock Exchange under the ticker symbol BTCK.

“The Fund offers a unique opportunity for investors to diversify their portfolios, balancing the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures. In doing so, the Fund provides investors with an integrated single-trade approach to digital assets and environmental sustainability,” Gemini said.

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