ESG-Centric 7RCC Joins Race with a Twist

• 7RCC, an ESG-focused asset manager has applied to join the Bitcoin ETF race.
• With advancing conversions between applicants and the SEC, hopes of bagging approval seem high.

The Bitcoin (BTC) spot Exchange Traded Fund (ETF) applicant pool is far from being filled as a relatively new player, 7RCC has joined the pack. 7RCC is a crypto asset management firm that was founded in 2021 to attract investors with ESG preference into the crypto ecosystem.

The company’s BTC ETF bid precedes the time BlackRock Inc. made the filing for its iShares Bitcoin Trust. As a small firm, 7RCC reportedly needed to put the infrastructure required for the spot Bitcoin ETF in place before launching. The new product, dubbed “7RCC Spot Bitcoin and Carbon Credit Futures ETF” is sponsored by Tidal Investments LLC and is considered as part of the Tidal Commodities Trust.

Per the filing, the Bitcoin ETF’s investment approach differs considerably from other applications that have been filed by other top players. Riding on its tilt to environmental sustainability, the 7RCC Bitcoin ETF will invest 80% of its capital base into actual BTC while the remaining will be invested in Carbon credit futures.

While the majority of Bitcoin ETF applicants named Coinbase Exchange as their preferred custodian, 7RCC has chosen a different player, Gemini as its custodian. Notably, the role of Gemini Exchange is limited to the Bitcoin aspect of the firm’s ETF holdings, the filing maintained silence on the potential custodian for the Carbon credits, cash, and other assets it may hold.

Having entered the pool of prospective spot Bitcoin ETF applicants, 7RCC will now await the first confirmation of its filing by the SEC, before the time for approval can be tracked.

Spot Bitcoin ETF: Is Approval Close?

The sentiment behind the potential approval of the Bitcoin spot ETF is high at the moment. This hyped enthusiasm stems from the positive communication between the US SEC and the different applicants, especially BlackRock, Grayscale Investments, Fidelity Investments, and Ark Invest.

Conversations between the markets regulator and these applicants have given room to much speculation with Bloomberg Analysts Eric Balchunas and James Seyffart pegging the odds of bagging an approval at 90%. Additionally, the expectation from these analysts and other market experts is that the approval might come as early as early January and that multiple approvals are likely to wade off the first mover advantage for any one applicant.

The applicants in the race for this BTC ETF product are notably not sleeping on their oars as many have conducted a series of amendments that have been implemented in updated S1 filings. Among the latest updates made by potential issuers like Ark Invest and BlackRock is the redemption model, with both finally succumbing to the Cash Creates model that the SEC prefers.

This Cash Creates redemption model will see investors get proceeds from their investments in cash rather than Bitcoin as most of the applicants proposed earlier. With these positive developments, many argue the US is on the verge of making history by approving the first Bitcoin spot ETF after more than 10 years since the first application was filed and rejected.

The broad bullish sentiment surrounding BTC has pushed the price up 3.6% to $43,034.16 with a market capitalization of $842,329,414,782.

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