US SEC suspends Bitcoin Tracker One and Ether Tracker One
The US Securities and Exchange Commission (SEC) announced on Sunday that they have issued an order to suspend the trading of the exchange-traded notes – Bitcoin Tracker One and Ether Tracker One. Those issued by XBT Provider AB, a Swedish-based subsidiary of CoinShares Holdings, the U.K. firm.
According to the official order, the reason behind the move was cited by SEC, “It appears to the Securities and Exchange Commission (SEC) that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol:CXBTF) and Ether Tracker One (Ticker Symbol: CETHF)” which is, “resulting in confusion amongst market participants regarding these financial instruments.”
The suspension is reportedly in effect as of 5:30 p.m. EDT September 9, and will last till 11:59 p.m. EDT on September 20. The release also noted that during the suspension, the trading on other, non-U.S. exchanges will not be interrupted. “The broker-dealer application materials submitted to enable the offer and sale of these financial products in the U.S., as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’ Other public sources characterize the instruments as ‘Exchange Traded Notes.’ By contrast, the issuer characterizes them in its offering materials as ‘non-equity linked certificates,'” according to the release.
The Securities and Exchange Commission announced the temporary suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) commencing at 5:30 pm EDT Sept. 9, 2018 and terminating at 11:59 pm EDT Sept. 20, 2018. https://t.co/5z1vEYFBFB
— SEC_News (@SEC_News) September 9, 2018
The SEC further mentioned that the decision was taken in “public interest” and the move is to ensure the “protection of investors.”Before it was being made available in the US, last month, Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) were listed as well as regulated in Sweden. In 2015, the notes began trading on the Nasdaq Stockholm exchange.
“Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona,” Ryan Radloff, the chief executive officer at CoinShares Holdings said at the time.
Image via Shutterstock
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