Explaining the reason for the suspension in the notice of suspension released on Sept. 9, SEC stated that there are inconsistencies in the description of the product and the commission deems it proper to suspend trade in the products until the inconsistencies are clarified.
Part of the notice stated:
“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), issued by XBT Provider AB (publ), a Swedish company headquartered in Stockholm, resulting in confusion amongst market participants regarding these financial instruments.”
The two cryptocurrencies tracking investment products have been traded by Nasdaq Stockholm exchange since 2015. Since their entry into the United States market, the products have enabled U.S residents to invest in exchange-traded notes (ETNs) issued by XBT Provider AB, a Swedish company and subsidiary of Coinshares Holdings based in the UK.
The two products were described as “a consolation prize” when they first entered the U.S market because they allow the buying of the ETNs with U.S Dollars over the counter. It also served as a temporary replacement for an ETF and so were very much welcome at the time.
The decision to suspend the two investment products may arouse confusion and some crypto enthusiasts might think the SEC is against bitcoin or Ethereum. However according to Jake Chervinsky, a legal expert, the action has nothing to do with either of Bitcoin or Ethereum.
According to him:
“As the full SEC order of suspension explains, the issue is “a lack of current, consistent and accurate information” on these products, such as whether they are ETFs, ETNs, or something else,”
Cherinsky had earlier predicted that the application for an ETF may not get any attention until 2019 which seems to be coming true.
According to SEC, brokers who allow trade in any of the two products during the period of the suspension which is to last from 5:30 pm EDT on Sept. 9, 2018 to 11:59 EDT on Sept. 20, 2018, will face legal actions and so all are advised to comply.
Almost every action of SEC in the past has affected the price of bitcoin negatively. Will this suspension do the same or will it be different this time?
The post Stop trading in Bitcoin CXBTF and Ethereum CETHF – SEC appeared first on ZyCrypto.