The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on a proposal by NYSE Arca to list an exchange-traded fund (ETF) that combines spot Bitcoin and carbon-credit futures.
According to a Sept. 4 filing, the final decision has been pushed back to November 21, 2024.
This is the second time the SEC has postponed the decision. The proposed ETF called the 7RCC Spot Bitcoin and Carbon Credit Futures ETF, is designed to allow people to invest in Bitcoin while helping to reduce its environmental impact.
The fund plans to allocate 80% of its assets to Bitcoin and 20% to carbon-credit futures. Tidal Investments, the issuer of the ETF, filed its registration in December 2023, with NYSE Arca submitting the formal request in March 2024
The carbon credit futures are contracts that are designed to help reduce greenhouse gas emissions through a cap-and-trade system. These futures represent emissions allowances, such as those regulated in the European Union and California.
SEC’s delay is seen as a hold-up to solving the environmental impact of Bitcoin Mining which is known for its high energy consumption.
According to the International Monetary Fund, cryptocurrency mining contributes around 1% of global greenhouse gas emissions.
This ETF stands out because it addresses the environmental issues associated with Bitcoin by using carbon credits to offset emissions. However, it remains uncertain whether the SEC will approve this eco-friendly approach.
Also Read: BlackRock Launches Ethereum ETF on Brazil’s B3 Exchange
