Nexo and 7RCC ESG-Focused Bitcoin ETF with Carbon Credits Proposal

Nexo and 7RCC Global propose an innovative Bitcoin Exchange-Traded Fund (ETF) that integrates Environmental, Social, and Governance (ESG) principles. Named the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF, this fund aims to merge cryptocurrency investment with sustainability, addressing the growing demand for responsible financial products.

The proposed ETF will allocate 80% of its portfolio to Bitcoin and 20% to Carbon Credit Futures. This approach blends digital asset growth with environmentally focused financial instruments. Carbon credit futures are tied to the predicted value of carbon credits, commonly used to manage emissions under cap-and-trade systems in regions such as the European Union, California, and the Regional Greenhouse Gas Initiative. This structure ensures adaptability to regulatory changes while fostering sustainable investment practices.

According to Nate Geraci, President of the ETF Store, Nexo and 7RCC Global have submitted an S-1 amendment to the US Securities and Exchange Commission (SEC). Geraci described the ETF as an "ESG version of a spot BTC ETF" and expressed confidence in its potential approval. He noted that this ETF introduces a fresh perspective in a competitive market.

The spot Bitcoin ETF market has seen $36 billion in net inflows since January, underlining substantial investor interest. If approved, this ESG-focused ETF will directly compete with industry leaders like BlackRock and Fidelity, offering investors an option that combines financial returns with environmental responsibility.

Additionally, this proposal aligns with global climate initiatives, including the World Economic Forum's Safeguarding the Planet program. Nexo Co-founder Kalin Metodiev, CFA, emphasized the long-term vision behind the initiative, stating: “Today’s generation seeks not only to profit but to make a difference.”

This ETF represents a significant step toward integrating cryptocurrency investment with sustainable finance, setting a new benchmark for responsible investment solutions.