A new player in the ETF market, 7RCC, is aiming to introduce an innovative, environmentally friendly Bitcoin fund.
7RCC Global will primarily invest in Bitcoin while allocating a significant portion of its portfolio to carbon-credit futures. The intent is to offer an investment solution that taps into the burgeoning Bitcoin market and addresses environmental concerns.
Bitcoin has always been a hot topic for the environmental implications of its mining process. The mining procedure, essential for transaction verification and the generation of new Bitcoin, relies heavily on energy-intensive computer networks. The energy demand has sparked debates about the cryptocurrency’s ecological footprint, particularly in energy consumption and water use, drawing parallels to the resource usage of entire countries.
The proposed fund by 7RCC, slated to trade under the ticker BTCK, presents a novel approach. The fund wants to mitigate the environmental impact traditionally associated with Bitcoin mining by including carbon-credit futures in its asset allocation.
Crypto exchange Gemini, led by the Winklevoss twins, is set to play a crucial role as the fund’s custodian. In a recent statement, Gemini highlighted 7RCC’s goal to bridge the gap between digital asset enthusiasts and investors conscious of environmental, social, and governance (ESG) criteria.
7RCC’s initiative places it among a growing list of more than 10 contenders in the U.S. seeking regulatory approval for a spot Bitcoin ETF. While most of these applications focus on direct Bitcoin holdings, the unique proposition of 7RCC’s fund may offer a distinctive appeal to investors looking for a more environmentally responsible way to invest in the dynamic world of cryptocurrencies.
Industry experts expect the SEC to approve multiple ETF applications together in January.
