SEC Delays Decision on NYSE Arca's Spot Bitcoin and Carbon Credit Futures ETF to November 21, 2024

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on a proposal by NYSE Arca to list an exchange-traded fund (ETF) that combines spot Bitcoin and carbon-credit futures.

The U.S. Securities and Exchange Commission (SEC) has again postponed its decision on a proposal by NYSE Arca to list an exchange-traded fund (ETF) that combines spot Bitcoin and carbon-credit futures.

According to a Sept. 4 filing, the final decision has been pushed back to November 21, 2024.

This is the second time the SEC has postponed the decision. The proposed ETF, called the 7RCC Spot Bitcoin and Carbon Credit Futures ETF, is designed to allow people to invest in Bitcoin while helping 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 issuer of the ETF, filed its registration in December 2023, and NYSE Arca submitted the formal request in March 2024

The carbon credit futures are contracts that are designed to help reduce greenhouse gas emissions through a cap-and-trade system. These futures represent emissions allowances, such as those regulated in the European Union and California.

The SEC’s delay is seen as a setback in efforts to address the environmental impact of Bitcoin mining, which 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 is significant because it attempts to address the environmental concerns associated with Bitcoin by using carbon credits to offset emissions. However, it remains to be seen whether the SEC will accept this eco-friendly approach.

Meanwhile, BlackRock has launched an Ethereum ETF on Brazil’s B3 Exchange, as reported by ETF Trends. The iShares MSCI Brazil Capped ETF (NYSE Arca: BRAZ) started trading on the exchange on September 3.

The ETF provides exposure to a portfolio of large- and mid-cap Brazilian companies, tracking the MSCI Brazil Capped Index (USD). It aims to offer investors a convenient and cost-effective way to access the Brazilian equity market.

The fund, which has an expense ratio of 0.48%, now trades on both the NYSE Arca and B3 exchanges, expanding its reach to investors in both the U.S. and Brazil.

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