The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the approval of an eco-friendly Bitcoin exchange-traded fund (ETF). This fund, proposed by Tidal Investments and filed by NYSE Arca, combines Bitcoin holdings with carbon credit futures in an effort to offset the environmental impact of Bitcoin mining. The SEC had previously postponed its decision in May, and the new deadline has been pushed to November 21, 2024.
The ETF aims to allocate 80% of its assets to Bitcoin and 20% to carbon credit futures. These carbon credits are linked to global cap-and-trade systems, which are designed to reduce greenhouse gas emissions over time. This ETF represents a broader movement toward more environmentally sustainable financial products within the cryptocurrency sector, which has been under scrutiny for its high energy consumption.
This delay is part of the SEC’s broader cautious approach toward cryptocurrency ETFs, with similar delays affecting other Bitcoin ETF applications. Analysts speculate that regulatory concerns around both the volatility of Bitcoin and the reliability of the carbon credit mechanisms could be factors contributing to the delay