December 22, 2024

Nexo and 7RCC Global are bringing a new approach to investing by introducing a Bitcoin ETF focused on ESG criteria.

This project is in line with the impressive market trajectory seen in spot Bitcoin ETFs since their emergence in January.

Nexo and 7RCC Bring an ESG Twist to Bitcoin Investing

On December 20, Nate Geraci, head of ETF Marketplace, announced that Nexo and 7RCC Global have filed an amendment to Form S-1 with the U.S. Securities and Exchange Commission (SEC) for a new fund — the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF.

Geraci revealed that the fund will diversify its portfolio by allocating 80% to Bitcoin and the remaining 20% ​​to carbon credit futures. He noted that the fund will focus on emissions allowances from cap-and-trade systems, including those in the European Union, California, and under the Regional Greenhouse Gas Initiative.

Carbon credit futures are financial instruments that are traded based on the expected value of carbon credits. They provide a mechanism to deal with regulatory uncertainty while promoting environmentally sustainable investment practices. Geraci described the fund as an “ESG version of a spot BTC ETF” and expressed optimism about its regulatory approval.

“Expect this to launch soon. Basically an ‘ESG’ version of a spot BTC ETF,” Geraci said.

Not only does this initiative represent a major advance in integrating ESG principles into cryptocurrency investing, it also sets a new standard for financial instruments designed to combine profitability with environmental and social responsibility.

If approved, the fund would enter a robust market currently led by large firms such as BlackRock and Fidelity. Spot Bitcoin ETFs have already attracted around $36 billion in net inflows since the start of the year, highlighting the dynamic investment landscape.

Beyond the ETF, Nexo’s collaboration with 7RCC Global also promises broader social benefits, in line with the World Economic Forum’s Protect the Planet initiative. Indeed, this partnership underscores a mutual commitment to promoting progress that respects and cares for the environment for future generations.

Kalin Metodev, CFA, co-founder and managing partner at Nexo, emphasized the partnership’s commitment to lasting impact.

“Unlike 20 years ago, today’s generation is not just about making money; it’s about making a difference. This strategic alliance highlights our commitment to sustainable solutions that will benefit future generations,” said Metodev.