Bitcoin ETFs Poised For Expansion After SEC, CFTC Approvals
The U.S. Securities and Exchange Commission (SEC) has approved the listing of the eco-conscious 7RCC Bitcoin ETF on the NYSE Arca exchange.
This milestone coincides with the latest advancements in merchandise futures The Commission on Trading (CFTC), cleared the path for spot Bitcoin options trading.
Bitcoin ETF gains focus as regulators clear major hurdles
On November 15, the SEC approved a rule change allowing 7RCC to list and trade its Spot Bitcoin and the Carbon Credit Futures ETF. The decision comes nearly a year after 7RCC filed its initial prospectus in December 2023. The application went through four revisions during a review process that began in March.
The fund aims to allocate 80% of its assets to Bitcoin and 20% to financial instruments related to carbon credit futures. These futures will be based on indices related to environmental initiativesincluding the EU Emissions Trading System, California Carbon Allowances and the Regional Greenhouse Gas Initiative.
“The Fund can only gain exposure to these carbon credit futures by investing directly in such futures contracts.
The Fund does not intend to invest in carbon credit futures specifically related to Bitcoin mining or other related processes,” U.S. Securities and Exchange Commission Wrote.
Carbon credit futures are financial instruments that allow trading based on the expected value of carbon credits. These tools help manage regulatory risks while supporting environmentally responsible investments. 7RCC stated that Gemini will serve as Custodian of the Bitcoins it holds.
The approval from the U.S. Securities and Exchange Commission (SEC) coincides with an announcement from the Clearing and Risk Division of the Commodity Futures Trading Commission (CFTC). Regulators say they will no longer supervise the liquidation of spot Bitcoin ETFs Options. The Options Clearing Corporation (OCC), which handles all stock options Clearing and settlement currently leads the field.
This development marks a major step forward in the rollout Spot Bitcoin ETF Options. Analysts including Eric Balchunas, senior ETF analyst at Bloomberg, viewed the CFTC notice as a key step forward.
“The CFTC just issued a notice clearing the way for spot Bitcoin ETF options to be listed. This is the second hurdle they need to clear after the SEC. Ball is now in the OCC court and they are interested, So they may be on the market soon,” Balchunas point out.
7RCC approval Bitcoin ETF The CFTC’s move highlights growing regulatory support for innovative financial instruments. These developments pave the way for expanded investment opportunities in cryptocurrencies and sustainable markets.
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