Cryptocurrency investment firm 7RCC has taken a significant step in the environmental, social, and governance (ESG) space by filing an application with the Securities and Exchange Commission (SEC) to launch a spot Bitcoin Exchange-Traded Fund (ETF). 

The proposed ETF, designed with ESG principles at its core, aims to provide a carbon-neutral investment avenue in the crypto market. Comprising 80% Bitcoin (BTC) and 20% carbon credit futures, 7RCC's ETF seeks to mirror daily movements in both BTC prices and carbon credit futures values.

The carbon credit futures are tied to the emissions allowance value under the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.

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Gemini to Serve As Custodian For 7RCC Bitcoin ETF

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has announced its role as the custodian for the 7RCC Bitcoin and Carbon Credit Futures ETF. 

This collaboration is seen as a strategic move to offer investors a diversified portfolio, combining the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures.  Despite the optimism surrounding this venture, ongoing debates persist regarding the practicality and regulatory acceptance of such a hybrid crypto investment vehicle.

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SEC's Evolving Stance On Spot Bitcoin ETFs 

The Securities and Exchange Commission (SEC) is currently reevaluating its approach to spot Bitcoin ETFs following recent court rulings. 

Analysts, including Bloomberg's James Seyffart, anticipate the approval of the first spot Bitcoin ETFs by the SEC in January 2024.  Seyffart suggests that the SEC may strategically delay the approval of applications to ensure a simultaneous approval, avoiding giving undue advantage to a specific issuer.