US Regulatory Body Postpones Verdict on eco-friendly Bitcoin ETF Once More

The U.S. Securities and Exchange Commission has once again postponed its decision regarding the New York Stock Exchange (NYSE) Arca’s application to list a novel exchange-traded fund (ETF) that would combine spot Bitcoin and carbon-credit futures. This decision, detailed in a September 4 filing, follows a previous delay announced in May, with a new deadline set for November 21.

Originally submitted by Tidal Investments in December 2023, with NYSE Arca’s application following in March, the 7RCC Spot Bitcoin and Carbon Credit Futures ETF aims to balance Bitcoin investment with environmental consciousness. The ETF plans to track a portfolio with 80% Bitcoin and 20% carbon credit futures.

This ETF initiative coincides with increasing scrutiny over the environmental impact of Bitcoin mining, which consumes substantial electricity. The International Monetary Fund highlighted in August that cryptocurrency mining contributes about 1% to global greenhouse emissions. However, a study in the Journal of Cleaner Production suggested that recent changes in Bitcoin’s mining algorithm could lower methane emissions.

The ETF would invest in carbon credit futures, which are derivatives based on emission allowances from cap-and-trade systems in places like the European Union and California, aiming to curtail greenhouse gases over time.

This decision delay mirrors a similar postponement by the SEC in August concerning the listing of the Hashdex Nasdaq Crypto Index ETF on Nasdaq’s electronic securities exchange, in response to a June listing request from Nasdaq.

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