Citing Market ‘Confusion’ SEC Suspend Trading in Bitcoin & Ether Tracker One
According to a new report by Reuters, the U.S. Securities, and Exchange Commission on Sunday suspended the trading of two XBT Provider products: Bitcoin Tracker One and Ether Tracker One.
According to SEC trading in Bitcoin Tracker One and Ether Tracker One would be halted in the United States until at least Sept. 20, citing confusion in the markets over whether the products are exchange-traded funds (ETFs).
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) 9 September 2018
The two products have been listed on the Nasdaq Stockholm exchange since 2015 and entered the U.S. market last month under the ticker CXBTF, enabling domestic investors to access and invest in the crypto ETNs in an over-the-counter (OTC) market with their U.S. dollars.
Pursuant to Section 12(k) of the Securities Exchange Act of 1934, trading in the two securities “is suspended for the period from 5:30 p.m. EDT on September 9, 2018, through 11:59 p.m. EDT on September 20, 2018,” the agency detailed.
The SEC proceeded to explain the inconsistencies of how the two products are categorized, elaborating:
ETNs are often confused with exchange-traded funds (ETFs). ETNs and ETFs are both traded on a securities exchange and can be bought and sold throughout the day, but there are important differences.
SEC noted that “the issuer characterizes them in its offering materials as ‘non-equity linked certificates’,” which XBT Provider says “are not principal protected” and “do not bear interest.”
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