United States Security and Exchange Commission (SEC) has extended its review period on the launch of crypto asset management firm 7RCC’s Bitcoin spot ETF (exchange-traded fund).
SEC Extends Deadline for 7RCC’s Bitcoin Spot ETF
In a notice released on Thursday, May 2, the SEC said it will now decide whether to approve or disapprove the 7RCC Bitcoin spot and Carbon Credit Futures ETF by June 24, 2024. This represents an extension of almost two months (45 days) compared to the original deadline, which was set for May 10.
The financial regulator said in the filing:
The Commission considers that it is appropriate to set a longer deadline for taking action on the proposed rule change so that there is sufficient time to review the proposed rule change.
THE application submitted to the SEC in December 2023 shows that the 7RCC fund is designed to provide direct exposure to Bitcoin alongside carbon credits. The company filing revealed that the ETF would track changes in the price of the leading cryptocurrency and carbon credits futures based on the Vinter Bitcoin Carbon Credits Index.
The ETF intends to invest 80% of its assets in Bitcoin and 20% in financial instruments, such as swaps, which provide exposure to carbon credit futures linked to emission allowances. Based on the 7RCC application, the carbon credits are linked to the European Union Emissions Trading System, the California Carbon Quota and the Regional Greenhouse Gas Initiative.
Gemini crypto exchange has been appointed as the custodian of the Bitcoin Spot ETF. If approved, this fund will offer a new dimension to the ETF market, especially after the launch of 11 spot Bitcoin ETFs in January.
SEC to reject Ether Spot ETFs: Michael Saylor
Another exchange-traded product awaiting the green light from the SEC is Ether Spot ETF. Unfortunately, discussions around the potential approval of the investment product have not been optimistic in recent weeks.
Michael Saylor, executive chairman and co-founder of MicroStrategy, is the latest figure to dash any hope of seeing the launch of the ETH spot ETF in the United States. Speaking At MicroStrategy’s Bitcoin For Corporations conference, the Bitcoin advocate speculated that the SEC would label Ether as a security.
Saylor mentioned that the financial regulator could also designate other tokens, including BNB, SOL, XRP and ADA, as unregistered crypto asset securities. The CEO of MicroStrategy said:
None of these tokens will ever be wrapped by a spot ETF, none of them will be accepted by Wall Street, and none of them will be accepted by traditional institutional investors as crypto assets.
Michael Saylor is a strong supporter of Bitcoin, as shown by his company’s consistent acquisition of BTC. As Reported Bitcoinist as of April 30, MicroStrategy holds 214,400 BTC, worth approximately $13.5 billion at the time of this writing.
Bitcoin price recovers above $63,000 on the daily timeframe | Source: BTCUSDT chart from TradingView
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