The review time for the introduction of the Bitcoin spot ETF (exchange-traded fund) by cryptocurrency asset management business 7RCC has been extended by the US Securities and Exchange Commission (SEC).
SEC Extension of 7RCC's Bitcoin Spot ETF Deadline
The SEC stated in a notice sent on Thursday, May 2, 2024, that it will now determine by June 24, 2024, whether to approve or disapprove the 7RCC Bitcoin spot and Carbon Credit Futures ETF. This is an extension of nearly 45 days, or two months, from the original deadline on May 10.
In the filing, the financial regulator stated:
In order to give itself enough time to evaluate the proposed rule change, the Commission determines that it is appropriate to set a longer deadline for action on the proposal.
7RCC's fund is intended to offer direct exposure to Bitcoin in addition to carbon credits, according to the application that was filed with the SEC in December 2023. According to the company's registration, the ETF will use the Vinter Bitcoin Carbon Credits Index to track movements in the price of the leading cryptocurrency and carbon credit futures.
The ETF plans to allocate 20% of its assets to financial products including swaps that offer exposure to carbon credit futures contracts linked to emissions permits, and the other 80% to Bitcoin. According to 7RCC's application, the carbon credits are associated with the Regional Greenhouse Gas Initiative, the California Carbon Allowance, and the European Union Emissions Trading System.
The Bitcoin Spot ETF custodian is none other than cryptocurrency exchange Gemini. If authorized, this fund will bring something fresh to the ETF market, particularly in light of the January introduction of 11 other Bitcoin spot ETFs.
Ether Spot ETFs Will Be Denied by SEC: Michael Saylor
The Ether spot ETF is another exchange-traded instrument that is pending SEC approval. Regretfully, recent discussions regarding the possible approval of the investment product have not been encouraging.
Michael Saylor, the executive chairman and co-founder of MicroStrategy, is the most recent figure to dash expectations for the US debut of the Ethereum spot ETF. During the Bitcoin For Corporations conference hosted by MicroStrategy, a proponent of Bitcoin made a prediction that Ether would be classified as a security by the SEC.
Saylor said that more tokens, like as BNB, SOL, XRP, and ADA, can also be classified as unregistered crypto asset securities by the financial regulator. The CEO of MicroStrategy stated:
Wall Street, mainstream institutional investors, and [these tokens] as crypto assets will never accept any of them, and none of them will ever be wrapped by a spot ETF.
Michael Saylor has consistently acquired Bitcoin for his company, demonstrating his public support for the cryptocurrency. As of April 30, MicroStrategy has 214,400 Bitcoin, which is valued at almost $13.5 billion, according to a report by Bitcoinist.
May 2024, Cryptoniteuae