The United States Securities and Exchange Commission (SEC) once again delayed a final decision on New York Stock Exchange (NYSE) Arca’s request to list an exchange-traded fund (ETF) combining spot Bitcoin (BTC) and carbon-credit futures, according to a Sept. 4 filing.
The SEC previously delayed a decision on the proposed ETF in May. The deadline for a final decision has now been pushed to Nov. 21. Tidal Investments, the ETF’s issuer, filed the fund’s S-1 registration in December 2023, and NYSE Arca filed its initial 19b-4 request in March.
The 7RCC Spot Bitcoin and Carbon Credit Futures ETF “seeks to provide exposure to Bitcoin with an environmentally responsible approach by offsetting carbon emissions.” The fund is designed to track the performance of a portfolio comprised of 80% Bitcoin and 20% Carbon Credit Futures, according to the March filing.
Exchanges such as CME offer carbon emissions futures. Source: CME Group
Bitcoin miners use significant electricity to power the computational effort needed to solve cryptographic puzzles, secure the network, and earn Bitcoin rewards. In August, the International Monetary Fund published a report claiming cryptocurrency mining — when combined with data centers — accounts for approximately 1% of global greenhouse gas emissions.
This figure might be partly mitigated as a result of April’s halving. An article in the Aug. 29 edition of the Journal of Cleaner Production claims Bitcoin mining could reduce methane emissions.
Carbon credit futures are contracts on “emissions allowances issued by various ‘cap-and-trade’ regulatory regimes that seek to reduce greenhouse gases over time,” the March filing said. The ETF’s futures will track the value of emissions allowances under cap-and-trade regimes in the European Union and California, among other jurisdictions, according to the filing.
In August, the SEC delayed a decision on whether an exchange-traded fund designed as a one-stop-shop crypto portfolio can be listed on Nasdaq’s electronic securities exchange. The delay was in response to Nasdaq’s June request for permission to list the Hashdex Nasdaq Crypto Index ETF on its electronic exchange.
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