An order from US Securities and Exchange Commission (SEC) suspending trading of the exchange-traded notes— Bitcoin Tracker One and Ether Tracker One— has been issues on Sunday. The aforesaid notes were issued by Coinbase Holdings’ Sweden-based subsidiary XBT Provider AB.
Citing the reason behind coming up with such order, the SEC said, “It appears to the Securities and Exchange Commission (SEC) that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF)”, resulting in confusion amongst market participants regarding these financial instruments.”
The order will be effective from 5.30 pm (ETD) on September 9 and will stay till 11:59 pm (ETD), September 20. The order clearly stated that trading on other non-US exchanges won’t be hampered due to this suspension.
The US regulatory body further noted that public interest is the main reason behind such decision and the move will ensure providers get the highest level of protection
“The broker-dealer application materials submitted to enable the offer and sale of these financial products in the U.S., as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’ Other public sources characterize the instruments as ‘Exchange Traded Notes.’ By contrast, the issuer characterizes them in its offering materials as ‘non-equity linked certificates,” the SEC statement said.
The US regulatory body further noted that public interest is the main reason behind such decision and the move will ensure providers get the highest level of protection.
Before US listings, Bitcoin Tracker One (CXBTF) and Ethereum Tracker One (CETHF) were listed and regulated in Sweden. Nasdaq Stockholm Exchange started trading of these notes in 2015.
CoinShares Holdings’ chief executive officer Ryan Radloff said,
Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona.
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A social media geek, Chandrakana Ray loves to track every buzz around the ever volatile cryptocurrency market, swinging moods of the crypto titans and unearths more about blockchain technology to make it a pleasant read for crypto enthusiasts. As a Business Correspondent with Cryptodawn, her writings zero in on every development of cryptocoins with an aim to give the most of it. A gourmet, she delves into myriad culinary to satiate her gastronomic urge.