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The US Securities and Exchange Commission has suspended the negotiation of two XBT Provider products: Bitcoin Tracker One and Ether Tracker One. The agency attributes "a lack of current, consistent and accurate information" that leads to "confusion among market participants" as the reason.
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SEC suspends the trading of XBT Provider tools
Sunday September 9th, the US Securities and Exchange Commission (SEC) issued an "Order to suspend trading" for two exchanges exchanged products issued by XBT Provider AB (publ), a Swedish company based in Stockholm
The Commission states that "there is no updated, consistent and accurate information" Concerning Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), "which has created confusion among market operators with regard to these financial instruments. "The track of the products the prices of the respective cryptocurrencies.
Noting that both instruments are listed and traded on the Nasdaq / OMX in Stockholm and were recently listed on OTC Link managed by OTC Markets Group Inc., the SEC added:
The Commission is of the opinion that the 39. public interest and investor protection require a suspension of trading in the aforementioned company's securities.
Pursuant to Section 12 (k) of the Securities Exchange Act of 1934, negotiation of the two securities "It is suspended for the period from 5:30 pm EDT on 9 September 2018 until 23:59 EDT on 20 September 2018," the detailed agency.
ETF, ETN, or non-equity related certificate?
The SEC proceeded to explain the inconsistencies of how the two products are categorized, by elaborating:
The materials for broker-dealer applications submitted to allow the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as "Exchange Traded Funds (ETF)".
The agency defines ETFs as registered investment companies that offer investors a way to pool their funds in a fund that invests in stocks, bonds or other assets. In return, investors receive an interest in the fund.
However, the Commission stressed that "Other public sources characterize the tools like" Exchange Traded Notes (ETN) ". Unlike ETFs, these notes are unsecured debt obligations of a financial nature that trade on a stock exchange. "The ETN payment terms are linked to the performance of a benchmark or benchmark index, which represents the investment objective of the ETN," describes the agency.
According to the SEC:
ETNs are often confused with exchange-traded funds (ETFs). ETNs and ETFs are traded on a stock exchange and can be bought and sold in the day, but there are important differences.
To further complicate the issue, the Commission noted that "the issuer characterizes them in its offer materials as" certificates "not related to equity", "which the XBT supplier says" are not protected mainly "and" do not bring interest "
In addition to Bitcoin Tracker One and Ether Tracker One, the company has two other products: Bitcoin Tracker Euro and Ether Tracker Euro.
do you think of the SEC that suspends the trading of XBT Provider tools? Let us know in the comments section below.
Images kindly granted by Shutterstock and XBT Provider.
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