- Reasons for the Delay
- Features of NYSE Arca Bitcoin ETF
- Regulatory Situation Surrounding Bitcoin Mining
The SEC has delayed its decision on NYSE Arca's Bitcoin ETF application for the third time, now until November 21, 2024.
Reasons for the Delay
The SEC has postponed its decision on NYSE Arca's Bitcoin ETF application for the third time. The initial filing was made in December 2023, with the latest extension occurring in May.
Features of NYSE Arca Bitcoin ETF
The proposed NYSE Arca Bitcoin ETF, named 7RCC Spot Bitcoin and Carbon Credit Futures ETF, aims at offering a greener solution. It plans to allocate 80% to Bitcoin and 20% to carbon credit futures. These carbon credits are intended to offset carbon emissions within cap-and-trade systems like the European Union or California.
Regulatory Situation Surrounding Bitcoin Mining
The SEC is scrutinizing the environmental impact of Bitcoin mining. The International Monetary Fund estimated in August 2023 that cryptocurrency mining could account for up to 1% of global greenhouse gas emissions. Besides NYSE Arca's application, the SEC has also delayed decisions on other cryptocurrency ETFs, including the Hashdex Nasdaq Crypto Index ETF.
The SEC's decision on the NYSE Arca Bitcoin ETF is now expected no earlier than November 2024. This step highlights the regulator's focus on the environmental aspects of the cryptocurrency industry.
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