Nexo and 7RCC Propose ESG-Focused Bitcoin ETF with Carbon Credits
Nexo and 7RCC Global propose a Bitcoin Exchange-Traded Fund (ETF) that integrates Environmental, Social, and Governance (ESG) principles. The Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF aims to merge cryptocurrency investment with sustainability, addressing demand for responsible financial products.
The proposed ETF will allocate 80% of its portfolio to Bitcoin and 20% to Carbon Credit Futures. This structure blends digital asset growth with environmentally focused financial instruments. Carbon credit futures relate to the anticipated value of carbon credits, commonly used in emissions management under cap-and-trade systems in regions such as the European Union, California, and the Regional Greenhouse Gas Initiative. This ensures adaptability to regulatory changes while promoting sustainable investment practices.
Nate Geraci, President of the ETF Store, stated that Nexo and 7RCC Global have submitted an S-1 amendment to the US Securities and Exchange Commission (SEC). He described the ETF as an "ESG version of a spot BTC ETF" and expressed confidence in its potential approval, noting its fresh perspective in a competitive market.
The spot Bitcoin ETF market has seen $36 billion in net inflows since January, indicating substantial investor interest. If approved, this ESG-focused ETF will compete with industry leaders like BlackRock and Fidelity, providing investors with options that combine financial returns with environmental responsibility.
This proposal aligns with global climate initiatives, including the World Economic Forum's Safeguarding the Planet program. Nexo Co-founder Kalin Metodiev, CFA, highlighted the initiative's long-term vision, stating: “Today’s generation seeks not only to profit but to make a difference.”
This ETF marks a significant step toward integrating cryptocurrency investment with sustainable finance, establishing a new benchmark for responsible investment solutions.