SEC Considers Approval Of Carbon-Neutral Bitcoin ETF – Technology – United States – Mondaq News Alerts

Science & Technology

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.
On September 20, 2021, NYSE Arca, Inc. (the “Exchange”) filed a proposed rule change to list a Bitcoin trust that would be “carbon neutral.” The SEC extended its time to consider the application. The SEC is seeking comments on a list of questions in addition to comments addressing the sufficiency of the Exchange's statements in support of its proposal.
The stated investment objective of the exchange-traded fund (“ETF”) is to track the performance of Bitcoin as measured by an index designed to reflect the performance of Bitcoin in U.S. dollars on a carbon-neutral basis. The ETF intends to offset the carbon footprint associated with Bitcoin once a quarter by paying for the instantaneous retirement of voluntary carbon credits equal to the daily estimated carbon emissions associated with the Bitcoins held by the ETF.
Last week, the SEC rejected the listing application of two ETFS tracking the performance of Bitcoin based on the view that the ETFs did not satisfy various listing requirements under Section 6 of the Exchange Act that are intended to ensure fair pricing. Given the SEC's objections to those ETFs, it is not clear on what basis the SEC might warm up to a carbon-neutral ETF. 
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
  © Mondaq® Ltd 1994 – 2021. All Rights Reserved.

Passwords are Case Sensitive

Forgot your password?
Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms
Articles tailored to your interests and optional alerts about important changes
Receive priority invitations to relevant webinars and events
You’ll only need to do it once, and readership information is just for authors and is never sold to third parties.
We need this to enable us to match you with other users from the same organisation. It is also part of the information that we share to our content providers (“Contributors”) who contribute Content for free for your use.