The U.S. Securities and Exchange Commission (SEC) has approved the listing of the environmentally oriented bitcoin ETF 7RCC on the #NYSE Arca exchange.
This step occurred simultaneously with the approval of bitcoin options by the Commodity Futures Trading Commission (CFTC).
#BitcoinETFs are Becoming more Popular
On November 15, the SEC approved a rule change that allows 7RCC to trade its ETFs for bitcoin and carbon credit futures. This decision comes almost a year after 7RCC filed its application in December 2023. The application went through four corrections in the review process that began in March.
The fund plans to invest 80% of its assets in bitcoin and 20% in financial instruments related to carbon credit futures. These futures will be based on indices related to environmental initiatives, including the European Union's Emissions Trading System, the California Carbon Quota and the Greenhouse Gas Initiative.
"The Fund will gain access to carbon credit futures by investing directly only in such contracts. The fund does not plan to invest in carbon credit futures specifically related to bitcoin mining or other related processes," the SEC wrote in its message.
Carbon credit futures help control regulatory risks and promote environmentally responsible investments. 7RCC announced that Gemini crypto exchange will act as a custodian.
The SEC approval came at the same time as the statement by the CFTC's Clearing and Risk Division. The regulator announced that it will no longer control clearing for bitcoin ETF options on the spot market. This function is now performed by the Options Clearing Corporation (OCC), which handles all stock options and their calculations.
The CFTC's decision significantly advances the launch of Bitcoin ETF options. Analysts consider it a key step.
"The CFTC has just issued a notice that opens the way for listing options on bitcoin ETFs. This is the second hurdle that had to be overcome after the SEC. Now the ball is on the OCC's side and they are interested, so they will probably start listing soon," Bloomberg ETF analyst Eric Balchunas said in a statement.
The approval of the 7RCC Bitcoin($BTC
ETF and the CFTC's moves highlight the growing regulatory support for innovative financial instruments. These developments pave the way for expanding investment opportunities in both the cryptocurrency and traditional markets.