Nexo and 7RCC Global are pioneering a new approach in the investment space by introducing an ESG-focused Bit Bitcoin exchange-traded fund (ETF).
This initiative aligns with the impressive market trajectory of the recently debuted physical Bit Bitcoin ETF in January.
Nexo, 7RCC Bit Bitcoin Investment ESG Variation
On December 20, Nate Geraci, president of 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 called the Nexo 7RCC Physical Bit Bitcoin and Carbon Credit Futures ETF.
Geraci stated that this ETF will diversify its portfolio, allocating 80% to Bit Bitcoin and the remaining 20% to carbon credit futures. He emphasized that this ETF will focus on the emission allowances established in the cap-and-trade systems of the European Union, California, and the Regional Greenhouse Gas Initiative.
Carbon credit futures are financial instruments traded based on the expected value of carbon credits. This provides a mechanism to address regulatory uncertainty while promoting environmentally sustainable investment practices. Geraci described this ETF as the "ESG version of a physical BTC ETF" and expressed an optimistic outlook on regulatory approval.
"We expect it to launch soon. Essentially, it's a physical BTC ETF with an 'ESG' twist," Geraci said.
This initiative not only represents a significant advancement in embedding ESG principles into cryptocurrency investments but also sets a new standard for financial products that combine profitability with environmental and social responsibility.
If approved, this ETF will enter a robust market led by powerhouses like BlackRock and Fidelity. Physical Bit Bitcoin ETFs have already attracted around $36 billion in net inflows, underscoring a dynamic investment landscape.
In addition to the ETF, Nexo's collaboration with 7RCC Global aligns with the World Economic Forum's initiatives to protect the planet, promising broader social benefits. This partnership emphasizes a mutual commitment to fostering progress that respects and nurtures the environment for future generations.
Kalin Metodiev, co-founder and managing partner at Nexo, highlighted the ongoing dedication to the partnership's lasting impact.
"Unlike generations past, today's generation is not just about making money, but about making a difference. This strategic alliance underscores our commitment to sustainable solutions that benefit future generations," Metodiev said.
