Small ESG-Focused Crypto Asset Manager Is Another Late Entrant to Bitcoin ETF Race

A small crypto asset manager focused on environmental, social and governance investing (ESG), 7RCC, is the latest applicant to join the race for a spot-bitcoin exchange traded fund (ETF), a filing with the Securities and Exchange Commission (SEC) shows.

7RCC was founded in 2021 to provide access to crypto and blockchain-related assets for EGS-conscious investors. The company started the process for an ETF 18 months ago but was waiting to have the right infrastructure in place to file an application, which is why it is entering the race much later than other applicants like Ark 21Shares, Grayscale and BlackRock, its CEO told CoinDesk.

“We were trying to position ourselves to be part of that first batch, but clearly that didn’t work out,” CEO Rali Perduhova said in an interview.

7RCC’s crypto ETF differs from other entrants in that 80% of it will consist of bitcoin and the remainder will hold carbon credits futures. Crypto exchange Gemini will provide custody for the fund's bitcoin, Perduhova said.

The filing did not name its custodian for cash and equivalent assets.

In a press release, Gemini said the ETF would let investors balance "the innovative nature of Bitcoin with the progressive realm of Carbon Credit Futures. In doing so, the Fund provides investors with an integrated single-trade approach to digital assets and environmental sustainability."

Expectations that the SEC will approve a spot bitcoin ETF in the near future have grown in recent months, with industry observers and participants pointing to the regulator's increased engagement with aspiring issuers and a recent court ruling asking the agency to review one of its ETF rejection orders.