The US Securities and Exchange Commission suspended the trading of Bitcoin Tracker One and Ether Tracker One, traded securities issued by XBT Provider AB, a subsidiary of CoinShares Holdings. The temporary suspension was issued by the US regulator on Sunday
. The Securities and Exchange Commission announced the temporary suspension of trade in the Bitcoin Tracker One ("CXBTF") and Ether Tracker One ("CETHF") securities from 5:30 pm EDT 9 September 2018 and ending at 11:59 pm EDT 20 September 2018. https://t.co/5z1vEYFBFB
– SEC_News (@SEC_News) 9 September 2018
According to the official order, the SEC identified an inconsistent language used to describe the products , known as Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), which are issued by XBT Provider AB of Stockholm
"For example, the broker-dealer request material submitted to allow the offer and the sale of these financial products in the United States, as well as certain trading sites, characterize them as "Exchange Traded Funds." Other public sources characterize the instruments as "Exchange Traded Notes". "On the contrary, I ssuer characterizes them in its offer materials as "certify you are not tied to actions ".
Before being released in the US last month, CXBTF and CETHF were listed and regulated in Sweden. The notes began trading on the Stockholm Nasdaq stock exchange in 2015.
Similar to exchange-traded funds (ETFs), exchange-traded notes (ETNs) offered investors exposure to Bitcoin and Ethereum. ETNs are technically different from ETHs. The former are not protected. These structured products are issued as senior debt securities. Conversely, ETFs represent a stake in an underlying commodity, providing investment in a fund that holds the assets it tracks.
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Last month, Ryan Radloff, managing director of CoinShares Holdings Ltd., the parent of XBT Provider AB said: "Anyone investing in dollars can now get an exposure to these products, whereas previously they were only available in euro or in Swedish krona Given the current regulatory climate in the United States, this is a great victory for Bitcoin. "
In addition to suspending the ETNs, the SEC has rejected several proposals from the ETF, despite a dissenting decision by Commissioner Hester Peirce. These wastes have been reviewed.
Although a SEC-regulated ETF has been characterized as the kind of impetus of cryptocurrency markets would need to attract Wall Street money, some analysts argue that Wall Street would only further fund Bitcoin, exposing it to the derivatives market that could undermine the economic fundamentals of the limited cryptocurrency offer.
Disclaimer: The opinions expressed in the Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin or cryptocurrency. Your transfers and exchanges are at your risk. Any losses you could sustain are your responsibility. Keep in mind that The Daily Hodl participates in affiliate marketing.
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