The SEC stopped trading for Bitcoin Tracker One (CXBTF) and Ether Track One (CETHF) at least until September 20 .
The week broke out in some bland panic attacks for cryptocurrency supporters. The price of Bitcoin rose steadily, reaching $ 7.387 on Wednesday, but fell to $ 6.443 in the day and then danced around $ 6.500 throughout the weekend. Then came the news on Sunday that the SEC had stopped exchanging two investment vehicles that tracked crypto: Bitcoin Tracker One (CXBTF) and Ether Track One (CETHF). Uncertainty and confusion have become the words of the day.
SEC takes action
Bitcoin Tracker One (CXBTF) and Ether Track One (CETHF) are managed by XBT Provider AB, a Swedish company. Entities provide equity access to cryptocurrencies. While both are listed on the Nasdaq in Sweden, the trades are "out of stock" outside the US trade.
In the SEC order, the government watchdog states:
It appears to the Securities and Exchange Commission (SEC) that they lack updated, consistent and accurate information on Bitcoin Tracker One ( Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF), issued by XBT Provider AB (publ), a Swedish company based in Stockholm, resulting in confusion among market participants regarding these financial instruments.
For example, materials for broker-dealer applications sent 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." Other public sources characterize the tools like "Exchange Traded Notes". On the other hand, the issuer characterizes them in its offer materials as "certificates not linked to shares".
CXBTF and CETHF are listed and traded on the NASDAQ / OMX in Stockholm and recently listed on OTC Link (formerly "Pink Sheets") operated by OTC Markets Group, Inc.
The Commission is of the opinion that the & # 39; public interest and investor protection require a suspension of trading in the securities of the aforementioned company.
No Need to Panic
Jake Chervinsky, a lawyer specializing in government defense defense and content litigation, says that all is well. He pointed out that there is no problem with Bitcoin or Ether from the point of view of the SEC. The problem actually lies in the ETNs themselves because the SEC "problem" is a lack of current, consistent and accurate information about these products, for example if they are ETFs, ETNs or something else. "
This is a problem with CXBTF and CETHF, not with bitcoin or ether.
As the whole SEC suspension order explains, the problem is" a lack of current, consistent and accurate information "on these products, for example if they are ETFs, ETNs or something else: (https://t.co/vXaPrOqJpx) https://t.co/4el9eERyjU
– Jake Chervinsky (@jchervinsky) 10 September 2018
The SEC notes that the documents given to them by Bitcoin Tracker One and Ether Track One are ETFs, but they are actually ETNs (notes traded on the stock exchange), in which they return all notes with Bitcoin or Ether. 19659014] Since the SEC has consistently rejected Bitcoin's ETF applications, the fact that they have closed Bitcoin Tracker One and Ether Track One makes perfect sense when they have filed documents that claim to be ETFs, and yet XBT Provider AB declares that it's something completely different.
This really is a big ball of c onfusion, and one that the SEC intends to untangle. It should be noted that this order is only temporary. It is likely that XBT Provider AB archives further documents to declare that the two initiatives are not at all cryptocurrency ETFs.
Overall, Bitcoin's reaction was a nice ho-hum. While a lot of angst has been expressed about this action by the Securities and Exchange Commission, BTC has remained relatively stable throughout the week. Bitcoin was trading for $ 6.214 on Sunday, then $ 6.331 on Monday and currently at $ 6,369.
Regarding the final decision of the SEC on the last application of Bitcoin ETF, we will have to wait until the end of the month to find out.
What do you think about the fact that the SEC stops exchanges in Bitcoin Tracker One and Ether Track One? Let us know in the comments below .
Images courtesy of Shutterstock and Twitter / @ jchervinsky.