US SEC Delays Decision on 7RCC’s Spot Bitcoin ETF Application

7RCC Global asked to wait two more months for the SEC decision on its spot Bitcoin ETF application centered on carbon credits after the initial five-month wait.

7RCC Global has been informed that it must wait an additional two months before the United States Securities and Exchange Commission (SEC) decides on its spot Bitcoin ETF application centered on carbon credits. The company had been awaiting the SEC’s decision for nearly five months. 

The Commission has just stated that it requires additional time to evaluate the proposed rule change before deciding whether to approve, reject, or even initiate legal proceedings regarding the 7RCC Spot Bitcoin and Carbon Credit Futures ETF proposal. According to a recent filing, the SEC has updated the date of the decision to June 24, 2024.

The proposed fund intends to hold 80% Bitcoin and 20% carbon credit futures, becoming the first with an offering with an environmental focus, according to one of the 7RCC filings.

7RCC and Tidal Financial Group formed a partnership to provide the infrastructure necessary to establish, operate, and expand the proposed ETF. A similar designation was assigned to Gemini as the custodian of the 7RCC Spot Bitcoin and Carbon Credit Futures ETF.

Significantly, on December 18, 2023, this filing for the spot bitcoin and carbon credit futures ETF was made. The U.S. SEC approved eleven additional spot Bitcoin ETF applications from BlackRock, Fidelity, Grayscale, and others one month later. 

“The Fund provides investors with a distinctive opportunity to broaden their portfolios by harmonizing the forward-thinking domain of Carbon Credit Futures with the pioneering characteristics of Bitcoin,” Gemini explained. Through this action, the Fund offers investors an integrated single-trade approach to digital assets and environmental sustainability.

The SEC has developed a pattern of delaying its decision regarding spot crypto ETF filings over the years. At present, leading investment asset management firms are awaiting the decision of the securities regulator regarding their on-the-spot Ethereum ETF applications.

The crucial Ethereum ETF decision for ARK 21Shares is anticipated to be rendered this month; however, market observers harbor skepticism regarding its actuality. 

Michael van de Poppe, a cryptocurrency analyst, has voiced skepticism regarding the SEC’s likelihood of approving Ethereum Spot ETFs in May, adding that the agency is more likely to delay the approval process than to reject these applications flatly.

Even media organizations such as Reuters anticipate a denial, given the SEC’s prospective classification of Ethereum as a security.