Nexo and 7RCC Global are pioneering a new approach in the investment space by introducing an ESG-focused Bitcoin Exchange Traded Fund (ETF).
This project aligns with the impressive trajectory of the market that has been observed on spot Bitcoin ETFs since their launch in January.
Nexo and 7RCC Bring an ESG Twist to Bitcoin Investing
On December 20, Nate Geraci, the president of The ETF Store, announced that Nexo and 7RCC Global have filed an S-1 amendment with the U.S. Securities and Exchange Commission (SEC) for a new fund - the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF.
Geraci revealed that this ETF will diversify the portfolio by allocating 80% to Bitcoin and the remaining 20% to carbon credit futures contracts. He emphasized that the ETF will focus on enabling emissions from existing cap-and-trade systems, including regions of the European Union, California, and the Regional Greenhouse Gas Initiative.
Carbon credit futures contracts are financial instruments traded based on the expected value of carbon credits. They provide a mechanism to manage regulatory uncertainty while promoting sustainable investment practices. Geraci described this ETF as an "ESG version of a spot BTC ETF" and expressed optimism about regulatory approval.
"Expected to launch soon. Essentially an 'ESG' version of a spot BTC ETF," Geraci said.
This initiative not only represents a significant step in integrating ESG principles into cryptocurrency investing but also sets new standards for financial instruments designed to combine profitability with social and environmental responsibility.
If approved, this ETF will join the robust market currently led by major players like BlackRock and Fidelity. Spot Bitcoin ETFs have attracted around $36 billion in net inflows since the beginning of the year, underscoring the motivating investment landscape.
Beyond the ETF, the collaboration between Nexo and 7RCC Global also promises to deliver broad social benefits, aligning with the World Economic Forum's Planet Pledge initiative. Indeed, this partnership underscores their shared commitment to driving progress while respecting and protecting the environment for future generations.
Kalin Metodiev, CFA, Co-Founder and Managing Partner at Nexo, emphasized the partnership's dedication to long-term impact.
"Unlike 20 years ago, today's generation is not just about making money; it's about making a difference. This strategic alliance is a testament to our commitment to sustainable solutions that benefit future generations," Metodiev affirmed.
