A new ETF blends 80% Bitcoin and 20% carbon credits, combining digital assets with eco-conscious investing.
Bitcoin ETFs are growing rapidly, surpassing $36B in just one year, signaling strong investor trust in crypto assets.
Ethereum ETFs show slower growth compared to Bitcoin, but momentum is expected to rise as market confidence builds.
Nate Geraci highlighted the imminent launch of the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF, combining cryptocurrency with environmental sustainability. This ETF offers a unique investment strategy by blending 80% spot bitcoin with 20% carbon credit futures. The SEC-approved 19b-4 filing sets the stage for this innovative "ESG" take on bitcoin investment, expected to gain traction among environmentally conscious investors.
https://twitter.com/NateGeraci/status/1870307543064400234 A Unique Blend of Bitcoin and Carbon Credits
This ETF introduces a distinctive portfolio structure. Bitcoin represents a volatile yet promising digital asset, while carbon credit futures reflect emissions allowances from cap-and-trade systems. These include programs like the European Union Carbon Emissions Allowance and the California Carbon Allowance. Consequently, this combination enables investors to align financial objectives with environmental goals.
The fund tracks an index replicating daily price movements of Bitcoin and carbon credit futures. However, the blend exposes investors to dual market risks. Bitcoin prices remain subject to technological developments and market sentiment. On the other hand, carbon credits hinge on regulatory frameworks and environmental policies. Hence, investors should prepare for volatility stemming from these dynamic sectors.
Cumulative Flows: A Cryptocurrency ETF Surge
As per Geraci’s updated data, the momentum for cryptocurrency ETFs is unprecedented. Gold ETFs, launched in 2004, have reached $60 billion in cumulative flows over two decades. In stark contrast, spot bitcoin ETFs amassed over $36 billion within a year of launch in January 2024. This explosive growth underlines the mounting investor confidence in digital assets.
https://twitter.com/NateGeraci/status/1869746956647678387
However, spot Ethereum ETFs, which debuted in July 2024, exhibit slower cumulative flows. Ethereum remains a developing asset class. This suggests investors are still exploring its unique proposition compared to Bitcoin. Despite this, Nate Geraci believes Ethereum inflows will accelerate as market confidence solidifies.
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