7RCC Global Inc., a Miami-based company, is making waves in the Bitcoin world by proposing an innovative fund in its inaugural application. This fund would allocate about 80% of its assets to Bitcoin and the remainder to carbon-credit futures, aimed at curbing greenhouse gas emissions, as outlined in their filing.
Bitcoin’s processing involves miners—companies operating extensive computer setups that compete to validate transactions and earn new coins. However, this process demands significant energy consumption.
The environmental impact of Bitcoin mining has faced scrutiny, with concerns raised about its energy usage, often likened to that of entire developed nations. Reports, including one from The New York Times, highlighted the immense pollution caused by Bitcoin mining, with the public often bearing the cost. Recently, discussions have pivoted toward the water consumption tied to this activity.
Despite these criticisms, cryptocurrency enthusiasts counter these claims, arguing that Bitcoin mining’s environmental impact is minimal compared to emissions from vehicles. Some proponents also anticipate a shift toward utilizing otherwise wasted energy sources for mining.
7RCC intends to introduce its fund, potentially trading under the ticker BTCK, with Gemini, a crypto firm, serving as its custodian. Gemini highlighted in a blog post that 7RCC aims to connect the digital asset industry with environmentally conscious investors.
Carbon offsets provide a means for companies to align with environmental targets by trading “rights” or certificates linked to activities that reduce carbon dioxide levels.
However, the carbon-offset market faces criticism for allegedly failing to deliver on its promises of carbon neutrality. The CEO of South Pole, a major carbon-offset seller, stepped down amid greenwashing allegations, raising concerns within the industry.
7RCC’s filing places it among over 10 other entities seeking to establish a spot-Bitcoin fund in the US. These applications, anticipated for potential approval by the Securities and Exchange Commission (SEC), primarily propose direct Bitcoin holdings. Analysts speculate approval for a spot fund could arrive as early as January.
Rali Perduhova, 7RCC’s co-founder and CEO, expressed excitement at the prospect of spot ETFs being approved soon, as the company initially believed such approvals could arrive by the end of the year or early next year.
