Less than a month after its US debut, the Bitcoin Tracker One (OTC: CXBTF) is facing the suspension of the Securities and Exchange Commission (SEC).
Structured as a Traded Note (ETN) exchange, the Bitcoin Tracker One product debuted in Sweden in 2015. CXBTF clearing and settlement are available in Krona and Euro as the product is listed and regulated in Sweden. The ETN is issued by XBT Provider, which is a subsidiary of CoinShares.
In a statement released on Sunday, the SEC stated that the suspension of CXBTF and the Ether Tracker One (OTC: CETHF) will take effect from 17:30 (eastern time) 9 September th and last until 11.59 pm Eastern time of 20 September th .
"The Commission temporarily suspended trade in the CXBTF and CETHF securities due to the confusion among market participants on these instruments," said the SEC. "This order was entered pursuant to Article 12 (k) of the Securities Exchange Act of 1934 (Exchange Act)."
Another coup of ETFs
The debuts of CXBTF and CETHF in the US were seen as potential precursors of widely traded the funds traded in bitcoins (ETFs), a vehicle that the SEC has consistently rejected. Last month, the SEC Trading and Markets Division rejected requests from investment companies ProShares, Direxion and GraniteShares.
The SEC recently postponed the decision on a bitcoin ETF until late September. The deposit of the ETF by the investment company VanEck and the blockchain technology company SolidX could help reticent investors to adopt Bitcoin as a legitimate investment opportunity if approved.