Nexo and 7RCC Global Present an ESG Twist on Bitcoin Investment

Nexo and 7RCC Global are pioneering a novel approach in the investment sphere by introducing an ESG-centric Bitcoin exchange-traded fund (ETF).

Cryptocurrency investment is set to get a new ESG twist with an application to the US Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF) that will also include carbon credits.

According to a tweet on December 20 by Nate Geraci, president of the ETF Store, an S-1 amendment has been filed by Nexo and 7RCC Global for the Nexo 7RCC Spot Bitcoin and Carbon Credit Futures ETF.

Geraci said that the ETF will allocate 80% of its net assets to Bitcoin and the remaining 20% to carbon credit futures. The ETF will specifically track futures on emissions allowances from established cap-and-trade systems, such as those in the European Union, California and under the Regional Greenhouse Gas Initiative.

Carbon credit futures are financial instruments that are traded based on the projected value of carbon credits. They offer a way to hedge against regulatory risks and promote environmentally sustainable investment practices.

Geraci described the ETF as an “ESG version of a spot BTC ETF” and said that he expects it to launch soon.

The move is not just a major step towards embedding ESG principles in cryptocurrency investment but also sets a new tone for financial instruments that aim to combine profitability with environmental and social responsibility.

If approved, the ETF will enter a hot market that has already seen top funds from BlackRock and Fidelity attract around $36 billion in net inflows since the debut of spot Bitcoin ETFs in January.

Apart from the ETF, Nexo’s partnership with 7RCC Global also promises to drive broader societal benefits, tying in with the World Economic Forum’s Safeguarding the Planet initiative. The partnership aligns with a shared commitment to advancing progress that respects and nurtures the environment for future generations.

Kalin Metodiev, CFA, co-founder and managing partner at Nexo, highlighted the partnership’s focus on lasting impact.

“Unlike 20 years ago, today’s generation is not just about making money; it’s about making a difference,” Metodiev said. “This strategic alliance highlights our commitment to sustainable solutions that will benefit future generations.”